UNC Economic Impact Analysis

Summer2005 Spring2007
UNCEconomicImpactAnalysis: PhasesI,II,andIII
EconomicImpactTaskforce: JoeF.Alexander RhondaR.Corman LauraS.Connolly PatriciaE.Graham CharlesG.Schmidt
Acknowledgements
We are greatly indebted to so many of our UNC colleagues who helped make possible the completion of this project. In sum, their contributions made for a far more robust and meaningful set of analyses and recommendations in this, the final report. Peter Davidoff conducted the analysis and authored the Phase III section on UNCs return on investment in education. His contributions in that Phase cannot be overemphasized. Lea Araki was a major contributor in Phase II by lending her data analysis skills to the team. Likewise, Anita Molinas research skills proved instrumental in helping to collect information for Phase III of the project. David Diggs, our resident GIS expert, was of significant help in lending the team his mapping skills, which figured prominently into the display of the UNC alumni data in Phase III of this report. Significant contributions were also made by Lesley Compagnone and Gary Dutmers from UNCs Office of Marketing & Strategic Communications. Their writing skills, as well as their overall expertise in how to best communicate the results of this project proved invaluable. Other individual contributions were made by Lori Brachtenbach, Guy Brenckle, Krystal Dilka, Luanne Hummels, Vickki Klingman, Kirk Leichliter, Laura MartinBaxley, and Fran Schoneck, who each provided significant support in the provision of key internal data for Phases I and II of the project. Michael Johnson, Lynne Klyde, Mark Riddle, and Diana Suhr each provided assistance in helping to make Phase III a success. And finally, we would like to thank UNC President Kay Norton and Provost Allen Huang for supporting the effort and emphasizing the importance of UNC in the local, as well as the regional and national communities. UNC Economic Impact Taskforce (2005-07): Dr. Joe F. Alexander Dean-Monfort College of Business Rhonda R. Corman Lecturer-Economics School of Social Sciences Dr. Laura S. Connolly Associate Professor-Economics School of Social Sciences
Dr. Patricia E. Graham Associate Professor-Economics School of Social Sciences Dr. Charles G. Schmidt Professor-Geography School of Social Sciences
Table of Contents
Phase I: Direct Effects
ExecutiveSummary ......................................................................................................................... 1 200304DirectUniversityExpenditures ....................................................................................... 2 DirectTaxRevenueEstimates ......................................................................................................... 6 ConcludingRemarks...................................................................................................................... 11 PhaseIAppendixA:EstimationMethodology.............................................................................. 12
Phase II: Local and Regional Multiplier Effects

ExecutiveSummaryandIntroduction........................................................................................... 14 IndirectandInducedEffectsResultingfromtheUNCOperationalBudget ................................. 17 IndirectandInducedEffectsResultingfromFacultyandStaffExpenditures............................... 22 IndirectandInducedEffectsResultingfromStudentExpenditures ............................................. 24 SummaryofIndirectandInducedEffects ..................................................................................... 26 ComparisonofUNCsImpactwithotherInstitutionsandConclusions ....................................... 30 PhaseIIAppendixA:StudentPreferencesforGreeleyAreaAmenities ...................................... 32 PhaseIIAppendixB:Direct,Indirect,andInduced EffectswithExpenditureChainFlowChart ................................................................................ 34 PhaseIIAppendixC:DataandMethodology............................................................................... 36 PhaseIIReferences ....................................................................................................................... 38 PhaseIIGlossaryofTerms ............................................................................................................ 40
Phase III: Contributions to Community

ExecutiveSummary ....................................................................................................................... 43 LearningActivitiesthatAddValuetotheCommunitysQualityofLife ....................................... 45 LearningActivitiesthatBringVisitorstoNorthernColorado ....................................................... 47 LearningbyDoingandGiving:EmployeeandStudentService .................................................... 48 ActivitiesthatAddValuetotheGreaterSociety .......................................................................... 51 VisualImpactofUNCAlumniRegionally,NationallyandInternationally .................................... 56 UNCDeliversReturnonInvestmentinEducation ........................................................................ 59
PhaseIIIAppendixA:2004estimatedTourismImpact ofUNCSponsoredEventsand/orHeldatUNC .......................................................................... 65 PhaseIIIAppendixB:CommunityOrganizations BenefittingfromUNCEmployeeTimeDonationsin2006 ......................................................... 67 PhaseIIIAppendixC:NotesonReturntoEducationMethodology ............................................ 68 PhaseIIIReferences ...................................................................................................................... 73
UNC Economic Impact Analysis: Phase I Report
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UNC Economic Impact Analysis: Phase IDirect Effects

Executive Summary
Given the results of decades of research, it is generally accepted that institutions of higher education make significant contributions to the economic growth and quality of life in communities where they are located. Employee and student spending create employment and generate state and local tax revenues. In addition, University-sponsored activities (conferences, athletic events, etc.) attract visitors and bring additional dollars throughout the year to the area as well. The faculty, staff, and students enhance community vitality through volunteerism, charity work, and research efforts. Following a growing number of state budget constraints and public concerns over the allocation of Colorado tax dollars, researchers at the University of Northern Colorado (UNC) were asked to assess the institution-specific magnitude of such contributions, paying special attention to the effects within several geographic regions: the city of Greeley, northern Colorado (defined as Weld and Larimer counties, including Greeley), and the state as a whole. This first phase of UNCs Economic Impact Study examines the impact of direct expenditures by the university and its faculty, staff, and students. Subsequent phases of the study will identify indirect and induced effects beyond that of initial spending, including the often-ignored but significant intangible contributions the universitys presence generates. Highlights of the direct spending analysis indicate: UNC spends approximately $23 million annually on goods and services within the state of Colorado. Of this total, almost $8 million is spent within northern Colorado, over three-fourths of which is spent in the city of Greeley. Additionally, the University spends an average of more than $15 million per year on facility improvement and construction within the state of Colorado; Approximately $63 million is paid annually to nearly 5,900 full and part-time employees residing in northern Colorado. Eighty-nine percent of that total (over $55 million) went to employees living in Weld County, most of which ($49 million) was paid to Greeley residents; Faculty and staff spending in Weld County was estimated between $8 to $12 million; spending in Larimer County was estimated at more than $1 million and ranged from $10 to $15 million within the state of Colorado;
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Faculty and staff contributions to Colorado income tax revenue were estimated to exceed $2 million, and their spending generated over $0.5 million in state and local sales tax revenue; and Student spending within the Greeley and Weld County areas was estimated to range from $53 to $72 million per academic year, contributing additional state and local sales tax revenue of over $3 million.
Introduction
An old adage in the business world credits three factors with the ultimate success or failure of an enterprise: location, location, location. Although the context of that adage differs from that of this report, the spirit of the saying is clearly relevant. Over time, universities become constant fixtures within their communities and the effects of their ongoing operation may be taken for granted. The purpose of this report is to reestablish the connection between the community and university by examining the direct effects within the local and regional economies stemming from UNCs direct expenditure patterns. This report presents the results of Phase I of the UNC Economic Impact Study. It examines direct effects of expenditures stemming from the operational activities of the University of Northern Colorado (UNC) within the city of Greeley, northern Colorado (Weld and Larimer counties), the state of Colorado, and the rest of the country. The university's spending, as well as that of its faculty, students, and staff, adds to the region's prosperity through community purchasing and job creation. Phase I identifies the payment remittance locations for direct university expenditures. In addition, university payroll data is categorized (based on the employees resident zip code) to estimate appropriate direct spending impacts and tax revenues stemming from employee income. Phase I also estimates student generated spending and tax impacts on the local, regional and state economies. The examination of direct expenditures provides a baseline estimate of the economic impact of the university. The total impact, which includes indirect and induced "multiplier effects" will be much larger and will be the subject of Phases II and III of the economic impact study.
2003-2004 Direct University Expenditures

This analysis employed UNCs direct expenditures for real goods and services from the 2003-2004 fiscal year. These expenditures include: professional services; communication and utilities; insurance, land and buildings; materials, supplies and equipment; as well as miscellaneous purchases. Capital construction projects usually occur over a substantial period of time, therefore these are presented separately from other direct expenditures. Direct Expenditures, Excluding Capital Construction
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Table 1 records UNCs operating expenditures by region. Almost 80% of the $7.88 million dollars spent in northern Colorado was within the city of Greeley. Overall, the university spent nearly $23 million in the state of Colorado.
Table 1: Operational Expenditures by Region

Location Colorado Northern Colorado Greeley Out of State Total Expenditures ($1000) $22,972 $7,880 6,213 $30,072 $53,044 Percent of total 43.3% 14.9% 11.7% 56.7% 100.0%
Capital Construction Expenditures Capital projects usually take place over a number of years. We use the six-year average of capital expenditures in order to smooth out the inevitable cycles in spending associated with such projects. As shown in table 2, almost all of the university's $15.575 million in capital construction spending goes to Colorado-based firms.
Table 2: Capital Construction Expenditures (6 Year Average)

Location Colorado Northern Colorado Greeley Out of State Total Expenditures ($1000) $15,501 $1,471 $152 $74 $15,575 Percent of total 99.5% 9.4% 1.0% 0.5% 100.0%
Employment: Faculty, Staff, and Students

UNC employed 5,846 individuals during the 2003-2004 academic year: 412 were fulltime teaching faculty, 835 were part-time teaching faculty, and 933 were administrative/exempt and state classified personnel. Approximately 85% of the administrative/exempt and classified employees worked full-time. The university also employed 596 graduate assistants, 2,618 student employees, and 452 hourly non-student employees, virtually all of whom were part-time employees. The distribution of UNCs gross payroll expenditure by employment type is shown in Exhibit 1. Student employment, based on number of jobs only, makes up 45% of total employment of the university, demonstrating UNCs dedication to providing financial support and student employment experience in addition to classroom knowledge. Some of the universitys student employees are working in activities closely related to their chosen field of study making the work experience gained as student employees invaluable to their future job placement and security.
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Exhibit 1
UNC Gross Payroll by Employment Type
$1,215,909 $3,063,300 $30,811,828 $4,002,730
$31,832,758
Faculty
Staff
Non-Student Hourly
GTA
Student
In order to analyze the universitys direct economic effects on local communities, we first established the residence patterns of employees. Employees will likely spend many of their income dollars at businesses within their local community. Exhibit 2 shows UNCs employment distribution by the location of the home residence of UNC faculty and staff, where staff combines State Classified and Administrative and Exempt personnel.
Exhibit 2
UNC Faculty & Staff Residence Distribution
n er th or N
de si ut O
d el W
o ad or ol C
ey el re G
120% 100% 80% 60% 40% 20% 0% 55% 66%
% Faculty per Location
ty un Co
90% 63%
O .C N
96% 81%
19% 4%
% Support Staff per Location
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Exhibit 3 shows that, as a group, UNC employees living in northern Colorado have over $40 million in take-home (net) income. As noted earlier, employees spend a large portion of their income where they live, providing a major benefit to the business communities of northern Colorado.
Exhibit 3
Payroll Totals by Region (in $1000)
$70,000.00 $60,000.00 $50,000.00 $40,000.00 $30,000.00 $20,000.00 $10,000.00 $0.00 Greeley Net Gross $31,223 $48,965 Weld $35,677 $55,674 Northern Colorado $40,458 $62,808 Colorado Out of State (Not N. CO) $6,200 $8,080 $36 $39 Net Gross
Direct Tax Revenue Estimates: Faculty and Staff

UNC is a tax exempt public institution so there are no direct tax revenue impacts from UNC direct purchases of goods and services. Therefore, local and state tax revenue estimates must be made based on employee salaries and estimated spending patterns. These secondary or indirect revenue impacts are not the subject of Phase I of this project but we do provide an estimation of these revenue items. The methodology and assumptions required to generate the estimates presented here are provided in the appendix to this report. More accurate estimations based on survey information will be included in the reports on Phases II and III of this project. State Income Tax Revenue The Colorado state income tax rate (4.63%) was levied on adjusted gross income to generate the tax revenue impacts presented in Table 3. Based on these estimates, UNC's faculty and staff contribute over $2 million to the state's income tax revenue.
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Table 3
Employee Category Faculty Total Gross Income Total Taxable Gross Income Total Estimated Colorado Income Tax Revenue Staff Total Gross Income Total Taxable Gross Income Total Estimated Colorado Income Tax Revenue Total of Faculty and Staff Total Gross Income Total Taxable Gross Income Total Estimated Colorado Income Tax Revenue Amount $30,811,828 $23,108,871 $ 1,069,941
$31,832,758 $23,874,568 $ 1,105,396 $62,644,586 $46,983,440 $ 2,175,333
Local and Regional Tax Revenue In the absence of survey information and data, tax revenue accruing to local and regional governmental entities is much more difficult to estimate than state income tax revenue. Local governments collect property taxes on the residential structures owned (and rented) by university faculty, staff, and students but do not levy property taxes on university property. The data needed to estimate property taxes paid by university employees is not currently available, so we defer that analysis to the second phase of this study. State and local governments also collect sales tax revenue from purchases made by university employees from state and local business enterprises, but not from purchases made directly by the university from state and local business enterprises. We estimate sales tax revenues generated by UNC faculty and staff based on their take-home income. The first step in estimating sales tax revenues stemming from UNC employee expenditures is to identify the residential location of those employees. Exhibits 4 and 5 show the locational (residence) distribution of gross and net income of UNC faculty and staff.
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Exhibit 4
Faculty Payroll by Region (in $1000)
$30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Greeley Net Gross $12,648 $20,600 Weld $13,768 $22,262 Northern Colorado $16,808 $26,893 Colorado (not N. CO) $2,659 $3,918 Net Gross
Exhibit 5
Exempt & Classified Staff (in $1000)
$35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Greeley Net Gross $14,869 $24,243 Weld $17,730 $28,757 Northern Colorado $18,951 $30,678 Colorado (not N. CO) $770 $1,154 Net Gross
The second step in estimating sales tax revenues involves household expenditure patterns; identifying how and where UNC faculty and staff spend their net incomes. Some expenditures, such as mortgages, usually leak out of the local economy because the company providing the good or service is located elsewhere. We estimated the size of the leakages before calculating the potential tax revenues and made several other assumptions to determine employee spending patterns. The appendix discusses the derivation of disposable net income and other model assumptions. In Table 4, two scenarios are recorded. Scenario #1 calculates the city, county and state sales tax revenue under the assumption that the households spend only 62.5% (25% of net income) of their disposable net income on goods and services within the region and
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state of their residence. Scenario #2 is less conservative and assumes that the households spend 100% (40% of net income) of their disposable net income on goods and services within the region and state of their residence. Therefore, this analysis provides a range of possible tax revenue impacts representing a spectrum of household expenditure behaviors.
Table 4
Total Net Income Faculty Net Income Staff Net Income Scenario #1 -- Spending = 25% of Net Income Weld Faculty and Staff -Estimated Local Sales Tax Revenue Larimer Faculty and Staff -Estimated Local Sales Tax Revenue Colorado -Estimated State Sales Tax Revenue Scenario #2 -- Spending = 40% of Net Income Weld Faculty and Staff -Estimated Local Sales Tax Revenue Larimer Faculty and Staff -Estimated Local Sales Tax Revenue Colorado -Estimated State Sales Tax Revenue $39,188,746.11 $19,467,702.28 $19,721,043.83
$ 7,874,568.49 $ 272,460.07 $ 1,065,266.43 $ 40,480.12 $ 9,797,186.53 $ 284,118.41
$ 12,599,309.60 $ 435,936.11 $ 1,704,426.27 $ 64,768.20 $15,675,498.44 $ 454,589.45
Direct Tax Revenue Estimates: Students

Because of the uncertainty associated with the income tax status of individual students, we did not estimate income tax revenues generated by students. To estimate students' local sales tax revenue impacts, we conservatively assume that UNC students spend approximately $10,000 per academic year ($5,000 per semester) and that 70% to 95% of that amount is spent locally. Furthermore, the analysis targets only students residing offcampus (not in University housing) paying rent and utility payments as well as providing
UNC Economic Impact Analysis: Phase I Report for their food, personal items, transportation, books, etc. Details on additional assumptions are provided in the appendix.
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Table 5 includes Greeley and state of Colorado sales tax revenue estimates stemming from student expenditures by semester and academic year. As noted earlier, Weld County does not charge sales tax and so we do not provide an estimate for northern Colorado.
Table 5
Per Semester Per Student 70% Spent Locally -Estimated Greeley Sales Tax Revenue -Estimated Colorado Sales Tax Revenue 95% Spent Locally -Estimated Greeley Sales Tax Revenue -Estimated Colorado Sales Tax Revenue $2,521.75 $ $ 87.25 73.13 Per Academic Year Per Student $5,043.50 $ $ 174.51 146.26
$3,422.38 $ 118.41 $ 99.25
$ 844.75 $ $ 6.83 198.50
University of Northern Colorado enrollment for the 2003-2004 academic year totaled 13,512 students generated from on-campus courses. The student housing capacity during 2003-2004 was 3,101 with a 94.94% occupancy rate; resulting in 2,944 students living in University resident facilities. We estimate that 10,568 students resided in off-campus housing (apartments, condos, town-homes, duplexes, or houses) during the 2003-2004 academic year. Applying the per student expenditure estimates and the per student tax revenue estimates to the total number of students residing off-campus results in the estimates summarized in Table 6. Impacts associated with the presence of UNC (and therefore UNC students) on state tax revenue differ from that of Greeley because 71% of students were classified as Colorado residents (for tuition purposes). If we assume that these Colorado residents would have remained in Colorado in the absence of UNCs presence, the Colorado sales tax revenue estimations would decrease by approximately 29%. However, the probability is not as great that UNC students who are from Greeley would have remained in Greeley in the absence of UNC.
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Table 6
Per Semester 70% Spent Locally -Estimated Greeley Sales Tax Revenue -Estimated Colorado Sales Tax Revenue 95% Spent Locally -Estimated Greeley Sales Tax Revenue -Estimated Colorado Sales Tax Revenue $ 26,649,854.00 $ $ 922,058.00 772,837.84 Per Academic Year $ 53,299,708.00 $ $ 1,844,221.68 1,545,675.68
$ 36,167,711.84 $ $ 1,251,356.88 1,048,874.00
$ 72,335,318.00 $ $ 2,502,819.44 2,097,748.00
Concluding Remarks
Phase I of the UNC Economic Impact Analysis focused on the direct economic impacts stemming from the operation of the University of Northern Colorado. We began with estimates of the institutions direct expenditures for real goods and services, including: professional services; communication and utilities; insurance, land and buildings; materials, supplies and equipment; as well as miscellaneous purchases. We found that the University spent a total of $53 million during the 2003-2004 academic year. Of that total, approximately $23 million occurred within Colorado. Almost $8 million was spent in northern Colorado, over $6 million of which was within Greeley. The University also spent over $15 million per year on facility improvement and construction over the six-year period beginning with the 1999-2000 academic year. Virtually all of that spending occurred within the state of Colorado. We also estimated the direct spending and tax impacts generated by faculty and staff. Based on the employee's residence, we noted that the university paid almost $63 million dollars to residents of Colorado during the 2003-2004 academic year, generating over $2 million in income tax revenues. Over $55 million of that total was paid to residents of Weld County, of which $49 million was to Greeley residents. As a result, we estimate that UNC faculty and staff spent between $9.8 and $15.7 million in the state of Colorado, adding $284 thousand to $455 thousand in sales tax revenues to the state coffers. Faculty and staff spending in Weld County are estimated to range from $7.8 and $12.6 million, with sales tax revenues of $272 to $436 thousand. Student spending and tax impacts were more difficult to estimate because we lack reliable data. However, based on the information available, we estimated that students spent $53.3 and $72.3 million in Greeley and Weld County, respectively, with potential sales tax implications of $922 thousand to $1.3 million.
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These direct economic impacts provide a conservative estimate of the University of Northern Colorado's economic importance to Greeley, northern Colorado, and the state as a whole. Subsequent phases of the study will measure indirect and induced effects and will attempt to identify the large and significant intangible contributions of UNC's faculty, staff, and students.
Phase I Appendix A: Estimation Methodology

In this appendix, we explain the methodology and assumptions used to estimate income tax and sales tax revenue generated from faculty and staff. We separate the analysis of faculty and staff impacts from those of students for two reasons. First, the absence of information regarding the tax status of students means that any attempt at estimation of income tax revenue generated by students would be little better than a guess. Therefore, we calculate income tax revenue generated by faculty and staff only. The income tax estimates presented in this analysis should err on the conservative side and underestimate the amount of income tax collected by the state of Colorado from UNC employment. Second, since student spending patterns are very different from those of faculty and staff, estimates of sales tax impacts requires a different methodological approach. Direct Local and State Tax Revenue Estimates: Faculty and Staff Colorado currently has a state income tax rate equal to 4.63 percent and is levied against any individuals federal taxable income. To estimate the state income tax revenue presented in Table 1, data on faculty and staff gross income was adjusted to allow for deductions and personal exemptions, estimated to equal 25 percent of gross income. The Colorado state income tax rate (4.63%) was then levied on this adjusted gross income amount (75 percent of overall gross income payments). To analyze sales tax revenue, it is first necessary to estimate an employee's "disposable net income" which is available for food, pharmacy, recreational activities, household/vehicle maintenance, and/or private savings. Once this is determined, we must also calculate the fraction of the disposable income spent within the region and apply the appropriate sales tax rate to that figure. A nationally accepted rule of thumb indicates that households spend roughly 30% of their take-home pay on housing. Although recent growth in residential property values has slowed regionally, the cost of housing on the Colorado front-range consistently exceeds that rule. This study assumes that housing costs (mortgage payments or rent payments) amount to 35% of net income. These housing costs are not subject to sales tax and they either leak out of the local economy (i.e. mortgage company is located in another state) or do not represent a UNC employees direct expenditure subject to sales taxation (i.e. rent paid to a local landlord), therefore, they are not considered to be part of the employee's disposable net income.
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It is also assumed that the cost of utilities (water, sewer, gas, electric, cable/satellite TV, land-based/wireless/internet communications) amount to 25% of a households net income. These services are not taxed, so this amount is also subtracted from disposable net income. Thus, disposable net income is calculated as 40% of the employee's after tax (net) income. Currently, we do not have data on actual spending patterns of university employees, so we estimate sales tax revenue under two scenarios. In scenario #1, we assume that all employees spend 62.5% of their disposable net income in the region of their residence, recognizing that people often spend a portion of their income in other locations. This scenario provides an estimate of the lower bound of sales tax revenue generated by UNC faculty and staff. Scenario #2 assumes that all employees spend all (100%) of their disposable net income (40% of their net income) in the region of their residence. For both scenarios, it is assumed that residents pay all relevant city, county, and state sales taxes for the location of their residence. Weld County does not collect sales tax so we assume that those residing in Weld County will pay Greeley city sales tax of 3.46% and state sales tax of 2.9%. Larimer County does collect sales tax of 0.8% and the city sales tax rate in both Fort Collins and Loveland is 3% so we assume Larimer County residents pay a total of 3.8% in local sales tax, plus 2.9% to the state. The results of all these assumptions are shown in Table 2. Direct Local and State Tax Revenue Estimates: Students Students receive income primarily through work and parental transfers. However, as noted above, their income tax status is unknown so we estimate sales tax impacts only for students. Again, the first step is to determine disposable net income. It is estimated that students spend between $8,000 and $13,000 per academic year not including tuition and fees. We assume that UNC students spend approximately $10,000 per academic year ($5,000 per semester). Furthermore, this analysis targets only students residing off-campus (not in University housing) paying rent and utility payments as well as providing for their food, personal items, transportation, books, etc. In Greeley, average monthly cost per room (per student) for a two bedroom, one bathroom housing unit is $255.00 per month or $1,147.50 per semester ($255 x 4.5 months).
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Utility and telecom expenses are estimated to be $250 per semester per student. These expenses are not subject to sales tax, so this leaves an estimated $3,602.50 per student for food, transportation, books, and household and personal items per semester. Assuming that 100 percent of the remaining amount is spent locally is unrealistic (students leave on weekends, travel out of the area for shopping, etc). Thus, we again present two scenarios, assuming a range of 70 to 95 percent of students' net disposable income is spent locally. The per-student estimates for each of these scenarios are shown in Table 3. To get an estimate of the aggregate effect, we first estimate the number of off-campus students as follows. In the 2003-2004 academic year, 13,512 students were enrolled in on-campus courses. The student housing capacity during 2003-2004 was 3,101 with a 94.94% occupancy rate; resulting in 2,944 students living in University resident facilities. We assume that the remaining 10,568 students resided in off-campus housing (apartments, condos, town-homes, duplexes, or houses) during the 2003-2004 academic year. Applying the per student expenditure estimates and the per student tax revenue estimates to the total number of students residing off-campus results in the figures shown in Table 4. Note that 71% of students (9,598 students of 13,512) were classified as Colorado residents for tuition purposes. If we assume that these Colorado residents would have remained in Colorado in the absence of UNCs presence, the Colorado sales tax revenue estimations would decrease very little (by roughly 29%). However, the odds that these resident students originated in the Greeley/Weld region and would have stayed in the Greeley/Weld region are not as great, and therefore the local sales tax revenue impact would be significantly smaller in the absence of UNC.
UNC Economic Impact Analysis: Phase II Report
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UNC Economic Impact Analysis: Phase IILocal and Regional Multiplier Effects
Phase II: Executive Summary
This report presents the findings from the second phase of the University of Northern Colorado Economic Impact Study. The first phase, which was completed in September 2005, examined the direct impact of spending by the University and its faculty, staff, and students on the local, regional and state economies. The present report provides a more comprehensive view by adding estimates of the indirect and induced "multiplier effects" to the previous baseline analysis. Highlights of the analysis indicate: UNCs annual operational budget is nearly 2% of Weld Countys gross product. UNC is one of five Weld County enterprises to employ over 1,000 people. Using UNCs budget as a proxy for total value of output, UNC is one of only seventeen Weld County enterprises that produced goods and services exceeding $100 million in value. UNC non-payroll purchases of goods and services from businesses in Weld County ($6.9 million), Larimer County ($2.0 million), and the rest of Colorado ($16.9 million) contributed to statewide economic impacts of $66.4 million during fiscal 2003-04. State appropriations to the university in fiscal year 2003-04 totaled $33.59 million. In comparison, the total impact of spending by the university, its employees, and its students within Colorado is estimated at more than $340 million. Local spending by the University of Northern Colorado, its employees, and its students supports 1,441 non-university jobs in Weld County and 2,010 in Northern Colorado.
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Aggregating the effects of UNC operational expenditures with spending by faculty, staff, and students resulted in direct, indirect, and induced impacts on output of $131 million in Weld County and $175 million in Northern Colorado. The income, or value-added, impacts are $72.1 million in Weld County and $99 million in Northern Colorado. The tax impact for the state and local government sectors stemming from university, faculty, staff, and student spending within Weld and Larimer Counties was over $13 million during the study period.
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Introduction
This report represents the second phase of the University of Northern Colorado Economic Impact Study. The University plays a major role in the economies of Greeley and Weld County. For example, UNC's annual operational budget is nearly 2% of Weld Countys gross product. UNC is also one of Weld Countys five largest employers and is one of only seventeen enterprises in the County with production valued at over $100 million. The University's spending, as well as that of its faculty, students, and staff, all add to the region's prosperity through community purchasing and job creation. In Phase I of the study, the task force examined the direct effects of these expenditures on the local, regional and state economies, providing a baseline estimate of the economic impact of the University. The primary goal of this second report is to present the indirect and induced "multiplier effects" estimated in Phase II. Inclusion of these impacts provides a more comprehensive picture of the total monetary impacts of the UNC within the region. Key findings of the study: State appropriations to the university in fiscal year 2003-04 totaled $33.59 million. In comparison, the total impact of spending by the university, its employees, and its students within Colorado is estimated at more than $340 million. Local spending by the University of Northern Colorado, its employees, and its students supports 1,441 non-university jobs in Weld County and 2,010 in Northern Colorado. Aggregating the effects of UNC operational expenditures with spending by faculty, staff, and students resulted in direct, indirect, and induced impacts on output of $131 million in Weld County and $175 million in Northern Colorado. The income, or value-added, impacts are $72.1 million in Weld County and $99 million in Northern Colorado. The tax impact for the state and local government sectors stemming from university, faculty, staff, and student spending within Weld and Larimer Counties was over $13 million during the study period.
In addition to the measurable economic impacts, there are numerous intangible benefits to the region arising from the existence of the University of Northern Colorado. These are often ignored or underrepresented in economic impact analyses. While these impacts cannot be directly measured, Phase III of the study will provide a descriptive analysis of faculty, staff, student, and/or alumni contributions to the community and identify other ways in which the University enhances the quality of life and cohesiveness within the City of Greeley and the region. In anticipation of the third phase, the present study also examines student preferences for amenities in the Greeley area (see appendix A).
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Indirect and Induced Effects

In the initial phase of this study, the task force identified the direct economic impacts of UNC on the surrounding community. However, focusing on only the direct impacts is analogous to reading only the first chapter of a best-selling novel; the reader often misses out on the most meaningful and important parts of the story. Direct spending leads to indirect and induced impacts on both output and income. To understand the significance of indirect and induced effects, consider the following example: In fiscal year 2004, UNC spent approximately $60,000 on purchases of paper goods from Northern Colorado Paper, also located in Greeley. This purchase is the direct output effect. In order to supply this output, Northern Colorado Paper must hire employees and other resources and compensate them through wages, interest, and rent. In addition, profit accrues to the business owners. These are the direct value-added income effects. The story continues as Northern Colorado Paper's employees, proprietors, and suppliers spend their direct value-added income on additional goods and services in the Greeley area. These purchases represent the indirect output effect while the income generated from the production of this output is the indirect valueadded income effect. Even when including these indirect impacts, the economic picture remains incomplete. The income generated from those indirect effects becomes the basis for a new round of spending. The goods and services produced in this and all subsequent rounds are the induced output effects. Similarly, the income generated from this and each subsequent round of production constitutes the induced value-added income effects. The indirect and induced effects are often referred to as "multiplier" effects because the ultimate impact is larger than the original expenditure. The indirect and induced multiplier effects generated from the activities of the University of Northern Colorado are the subject of this report. The task force was primarily interested in the indirect and induced impacts at three regional levels: (1) Weld County, (2) Northern Colorado (defined as Weld and Larimer Counties combined), and (3) the State of Colorado as a whole. Any spending that occurs beyond these areas is considered to be a "leakage" and is not counted in the calculation of the multiplier effects. Leakages can occur when the university, its employees, and/or its students make initial purchases from companies located outside the designated area of study. They also occur when employees of local companies patronized by UNC or its faculty, staff, or students make non-local purchases. (More details on indirect and induced effects are included in appendix B.)
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Indirect and Induced Effects Resulting from the UNC Operational Budget The total operating budget, including gross payroll, for the University of Northern Colorado for the fiscal year 2003-2004 was approximately $125.1 million. Payroll during that period accounted for about $65.7 million, leaving $59.4 million for university purchases of goods and services. 1 Figure 1 presents the breakdown of this $59.4 million. $6.9 million (12%) was spent in Weld County. An additional $2 million (3%) was spent in Larimer County for a total of $8.9 million (15%) in Northern Colorado. A further $16.9 million was spent in the rest of Colorado for a total of $25.8 million (43%) in the state as a whole. The remaining $33.7 million (57%) was spent out of state and internationally and is therefore a leakage as defined above. Many of UNC's purchases are made at local outlets of large national corporations. For example, payments for purchases from King Soopers are made to the Tennessee billing headquarters for King Soopers. Other out-of-state expenditures include payments for electricity from Excel Energy headquartered in Minnesota; heating gas purchased primarily from Duke Energy headquartered in Texas and ATMOS Energy headquartered in Arizona; computer equipment from Apple Computers based in Texas, Gateway Computers in California, Dell Computers in Illinois, and Hewlett Packard headquartered in California, IBM in Texas; the list is very extensive. University purchasing data was organized by payment address zip code, therefore any purchases made from the local distributor or outlet of a large national corporation will be viewed as a leakage in this study if payment was made to a location in another state. Figure 1. University Operating Expenditures, 2003-2004
Larimer County $2.0 million 3%
Weld County $6.9 million 12%
Outside Colorado $33.7 million 57%
Remainder of Colorado $16.9 million 28%
The total amount differs slightly from the total reported in the Phase I report due to the elimination of intra-university budgetary payments and transfers in Phase II.
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The input-output modeling software program, IMPLAN, was utilized in estimating the indirect and induced effects stemming from UNCs total expenditures for goods and services, employee expenditures, and student purchases. The IMPLAN development group provides an estimate of the demand function for public higher education facilities using the 1992 Bureau of Economic Analysis (BEA) Benchmark study. This function estimates the percentage of a higher education institutions budget spent in various industry sectors within the economy. It also regionalizes that demand based on the industry make-up of the region under study. To better understand this process, consider the following example: Suppose UNC were to spend $297,000 (0.5 percent of the total non-payroll operating budget of $59.4 million) on meat products for student cafeteria use. Since there is a large meat packing industry in Weld County, much of that demand could be met by local supply. For this example, it will be assumed that 75 percent of the demand is met by local suppliers. This would represent a local (or regional) purchasing coefficient (LPC or RPC) of 0.75 and the expenditure allocated to the local industry stemming from the Universitys demand for meat products would equal $222,750 (75% of $297,000). Now, suppose UNC were to buy a product that is not produced locally. In this case, the LPC for that commodity equals zero, regardless of how much money UNC spends on the product. The total supply would be imported from outside the local or regional economy and the entire expenditure would be a leakage from the local economy. In addition to the demand functions, the IMPLAN modeling system provides estimates of the local or regional purchasing coefficients (i.e., the percentage of demand for each sector that can be met by local suppliers). The regional purchasing coefficients for Weld, Larimer, and Colorado were all adjusted to better estimate the true impacts of UNCs activities on those economies. 2 The members of the UNC Economic Impact Task Force believe the impacts presented in this Phase II report are the best estimates possible, given the data available. All indirect and induced impacts were estimated using the full social accounting matrix (SAM) modeling system developed by Minnesota IMPLAN Group, Inc. The results for Weld County, Northern Colorado, and Colorado are provided in Table 1, with monetary impacts measured in millions of dollars. These are cumulative impacts, meaning that in order to isolate Larimer County impacts, one must subtract the Weld County numbers from the Northern Colorado numbers; and in order to isolate Colorado impacts that do not include Northern Colorado, one must subtract Northern Colorado results from the Colorado impacts.
While IMPLAN's estimates provide a very reliable regional modeling structure, the software also allows a user to adjust model parameters to better fit the model to the individual attributes of the industry and/or economy being analyzed.
UNC Economic Impact Analysis: Phase II Report Table 1. Operational Expenditure Impacts, FY 2004 Direct Total Output ($ millions) Weld County Northern Colorado (Weld and Larimer Counties) Colorado Total Employment (# jobs) Weld County Northern Colorado (Weld and Larimer Counties) Colorado Total Value-Added ($ millions) Weld County Value-Added
Labor Income Employment Compensation Proprietors Income Other Property Type Income Indirect Business Taxes
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Indirect + Induced 2.66 3.53 16.91 26.20 35.40 139.40 1.56 0.90 0.73 0.18 0.52 0.14 2.09 1.86 0.98 0.22 0.71 0.19 10.29 5.80 4.72 0.97 3.51 0.98
Total Impact 9.55 12.36 42.63 70.20 94.60 309.20 5.84 2.63 2.27 0.36 2.84 0.37 7.44 6.78 3.03 0.55 3.38 0.48 23.79 14.46 11.69 2.66 7.49 1.83
Multiplier
6.89 8.83 25.72 44.00 59.20 169.80 4.28 1.73 1.55 0.18 2.32 0.23 5.34 4.92 2.05 0.33 2.67 0.29 13.50 8.66 6.97 1.69 3.99 0.85
1.39 1.40 1.66 1.60 1.60 1.82 1.37 1.52 1.47 1.95 1.22 1.61 1.39 1.38 1.48 1.68 1.27 1.64 1.76 1.67 1.68 1.58 1.88 2.16
Northern Colorado Value-Added (Weld and Larimer Counties)

Colorado Total Value-Added

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Table 1 indicates that the University of Northern Colorado spent $6.89 million in Weld County during fiscal year 2003-04. This spending directly supported 44 jobs in the County and led to direct value-added income of $4.28 million. Breaking the valueadded income down into its components indicates that the 44 jobs were earning employee compensation of $1.55 million (roughly $35,227 each on average), enhancing proprietor incomes by about $180,000, earning other property income (rents, dividends, royalties) of $2.32 million, and leading to indirect business tax revenues (from excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses) of $230,000. As noted earlier, the economic impact of direct spending is only the beginning of the story. The total impact column reported in Table 1 reflects the direct expenditure effects plus the indirect and induced effects. The multiplier column shows the calculated multiplier estimated by the model results for output, employment, and value added categories. This multiplier estimate is calculated by dividing the total impacts by the corresponding direct expenditure. Multiplier estimation allows the users of this study to approximate the total economic impact associated with a change in purchasing behavior by UNC. For example, an additional expenditure of $100,000 in Weld County by UNC would generate indirect and induced effects of $39,000 for a total increase in output of $139,000. Value-added income would increase by a total of $137,000. The interpretation and use of the employment multiplier is a bit more complex. Based on direct expenditure effects, 6.39 jobs are supported in the Weld County economy for every $1 million spent locally by UNC. When including the indirect and induced impacts, that number increases to 7.35 jobs per $1 million. Multiplier effects for Northern Colorado and the State as a whole can be interpreted using the same methodology. The University of Northern Colorado, a publicly-funded institution, received $33.59 million in state appropriated funds for the 2003-2004 fiscal year. The total direct economic impact of UNC on the State of Colorado, summing direct output and value-
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added, was $39.22 million, yielding an economy-wide rate of return on appropriation dollars of 117 percent for the State of Colorado. After including the indirect and induced effects, the total economic impact of UNC's expenditures is $66.42 million, resulting in a rate of return on appropriation dollars of 198 percent. Indirect and Induced Effects Resulting from Faculty and Staff Expenditures The effects generated by non-student employees include expenditures of faculty, staff, administration, and non-student hourly employees. Impacts associated with student income and spending patterns are discussed in the following section of this report. Total gross payroll for the Universitys 1,605 non-student employees totaled approximately $65.7 million in the 2003-2004 fiscal year. Total net payroll for the same period for non-student employees totaled $46.7 million. The total net payroll paid within Colorado was $42.2 million or 90.36 percent; less than 10 percent of UNC net payroll dollars directly left the state. Net payroll is equal to gross payroll minus state and federal taxes withheld, pension fund withholding, and the employees share of fringe benefit costs. The net-to-gross payroll ratio is approximately 71 percent. Net payroll therefore serves as a good proxy for the income that UNC employees have available for spending and saving. Although it is possible that many UNC employees save a portion of their net earnings, it is assumed for the purpose of this analysis that this additional savings is very small. UNC makes available a variety of pension contribution programs that offer ample opportunity to save sizable portions of ones earnings on a pretax basis. It is assumed that most UNC employees take advantage of these savings programs and therefore spend most of their remaining net income. The demand patterns for households across income stratifications are estimated by the IMPLAN development group using the 1992 BEA Benchmark study discussed in the previous section. The same methodology for regional assessment of demand patterns is employed for these household institutions as for the governmental institution in the above section. The BEA benchmark study and information from BEAs Consumer Expenditure Survey serve as the basis for constructing these household demand functions. The payroll impact model results for Weld County, Northern Colorado, and Colorado are provided in Table 2.
UNC Economic Impact Analysis: Phase II Report Table 2. Non-student Employee Expenditure Impacts, fiscal year 2004 Direct Total Output ($ millions) Weld County Northern Colorado (Weld and Larimer Counties) Colorado Total Employment (# jobs) Weld County Northern Colorado (Weld and Larimer Counties) Colorado Total Value-Added ($ millions) Weld County Value-Added
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Indirect + Induced 8.62 9.76 17.31 86.20 98.30 150.50 5.16 2.90 2.32 0.57 1.78 0.48 5.87 3.28 2.64 0.64 2.05 0.54 10.54 5.97 5.04 0.92 3.62 0.96
Total Impact 42.48 48.18 59.53 306.10 349.40 438.80 17.29 9.42 7.85 1.57 6.06 1.81 19.71 10.70 8.96 1.74 6.96 2.05 28.46 15.72 13.58 2.14 9.82 2.93
Multiplier
33.86 38.42 42.22 219.90 251.10 288.30 12.13 6.53 5.53 1.00 4.28 1.33 13.84 7.42 6.32 1.10 4.92 1.51 17.92 9.75 8.54 1.22 6.20 1.97
1.25 1.25 1.41 1.39 1.39 1.52 1.43 1.44 1.42 1.58 1.42 1.36 1.42 1.44 1.42 1.58 1.42 1.36 1.59 1.61 1.59 1.76 1.58 1.49

Colorado Total Value-Added

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As with the results from direct spending, it is necessary to subtract the Weld County numbers from the Northern Colorado numbers in order to isolate Larimer County impacts and to subtract the Northern Colorado results from the Colorado impacts in order to isolate Colorado impacts that do not include Northern Colorado. Table 2 indicates that the University of Northern Colorados net payroll paid to residents of Weld County totals $33.86 million. These payroll dollars directly support 219.9 nonuniversity jobs in the County leading to direct value-added income of $12.13 million. Breaking value-added down further shows that those 219.9 jobs were earning employee compensation of $5.53 million (a little over $25,000 each on average); enhancing proprietor incomes by about $1 million; earning other property income (rents, dividends, royalties) of $4.28 million; and leading to indirect business tax revenues (from excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses) of $1.33 million within Weld County. The total impact column reported in Table 2 again reflects the direct expenditure effects plus the indirect and induced effects. The multiplier column shows the calculated multiplier estimated by the model results for output, employment, and value added categories. Multiplier estimation allows the users of this study to approximate the total economic impact associated with a change in net payroll distributed by UNC. For instance, if UNC were to approve a 5 percent across-the-board increase in payroll, direct payroll paid to Weld County residents would increase by $1.69 million. One could estimate that Weld Countys total output production would increase by $2.11 million, including direct, indirect, and induced effects. Multiplying the $1.69 million increase by the value-added multiplier of 1.43, yields an increase in value-added income of approximately $2.42 million. The total impact on regional employment resulting from a 5 percent across-the-board wage increase would translate to approximately additional 12.26 jobs. Indirect and Induced Effects Resulting from Student Expenditures Student expenditure patterns were estimated using data generated from a survey conducted in the Spring 2006 semester (see appendix C for details). Student expenditures did not include tuition since it is University revenue and is spent by the University to fund operations. Likewise, expenditure patterns for on-campus residents excluded their costs for room and board to avoid the double-counting of those funds. The student survey specifically asked students about their spending patterns, including the percentage of their expenditures made in Weld County and in Larimer County for a wide variety of goods and services. This information was then used to generate the demand function and regional purchasing coefficients for students. These were entered into the IMPLAN software to generate the indirect and induced impacts of student spending in Weld and Larimer. Unfortunately, constraints on the survey length prohibited gathering data on expenditures in other parts of Colorado, so the state model was not employed in the assessment of student impacts.
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The direct, indirect, and induced effects of student spending in Weld and Northern Colorado (Weld plus Larimer) are provided in Table 3. Table 3. UNC Student Expenditure Impacts, estimated for fiscal year 2005 Direct Total Output ($ millions) Weld County Northern Colorado (Weld and Larimer Counties) Employment (# jobs) Weld County Northern Colorado (Weld and Larimer Counties) Value-Added ($ millions) Weld County Value-Added
Indirect + Induced 23.28 33.75
Total Impact 78.95 114.12
Multiplier
55.67 80.37
1.42 1.42
823.40 1,270.40
240.80 355.10
1,064.20 1,625.50
1.29 1.28
34.80 1.59 11.75 4.12 13.70 5.23 51.07 25.19 19.90 5.29 17.89 8.00
14.20 0.77 6.20 1.53 5.14 1.33 20.82 11.24 9.14 2.10 7.69 1.89
49.00 2.36 17.95 5.64 18.85 6.56 71.89 36.43 29.04 7.38 25.58 9.89
1.41 1.49 1.53 1.37 1.38 1.25 1.41 1.45 1.46 1.40 1.43 1.24

* Due to lack of data, no estimates of the total impact of student spending outside of Northern Colorado are available.
Table 3 shows that the total estimated spending in Weld County by all UNC students is $55.67 million, an average of $4,584 per student. These student expenditures directly support 823.4 jobs in the County, leading to total value-added income of $34.8 million dollars. Breaking value-added down further shows that those 823.4 jobs are earning employee compensation of $11.75 million (roughly $14,270 each); enhancing proprietor incomes
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by $4.12 million; earning other property income (rents, dividends, royalties) of $13.7 million; and leading to indirect business tax revenues (from excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses) of $5.23 million. The total impact column reported in Table 3 again reflects the direct expenditure effects plus the indirect and induced effects. The multiplier column shows the calculated multiplier estimated by the model results for output, employment, and value-added categories. Multiplier estimation allows the users of this study to approximate the total economic impact associated with a change in net payroll distributed by UNC. For instance, if the amount spent by UNC students in Weld County were to increase by $1,000, Weld Countys total output production would increase by an estimated $1,420, including the $1,000 original increase in spending. Value-added would increase by approximately $1,410, and regional employment would increase by approximately .0135 jobs. This means that one additional job would be generated if student spending in Weld County increased by a total of approximately $74,000. Summary of Indirect and Induced Effects of Expenditures The previous three report sections explain the direct, indirect, and induced effects for three separate expenditure groups: (1) university operations, (2) non-student employees, and (3) students. In this section, these effects are aggregated to estimate the total economic impact of the University as a whole. Table 4 provides these results.
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Table 4. Total of Direct, Indirect, and Induced Impacts of Expenditures from UNC Operations, UNC Non-student Employees, and UNC Students, fiscal year 2004 Indirect + Total Direct Multiplier Induced Impact Total Output ($ millions) Weld County Northern Colorado (Weld and Larimer Counties) Colorado Total* Employment (# jobs) Weld County Northern Colorado (Weld and Larimer Counties) Colorado Total* Value-Added ($ millions) Weld County Value-Added
96.42 127.62 148.31 1,087.30 1,580.70 1,728.50 51.21 9.85 18.83 5.30 20.30 6.79 70.25 37.53 28.27 6.72 25.48 9.80 82.49 43.60 35.41 8.20 28.08 10.82
34.56 47.04 67.97 353.20 488.80 645.00 20.92 4.57 9.25 2.28 7.44 1.95 28.78 16.38 12.76 2.96 10.45 2.62 41.65 23.01 18.90 3.99 14.82 3.83
130.98 174.66 216.28 1,440.50 2,069.50 2,373.50 72.13 14.42 28.08 7.58 27.74 8.74 99.03 53.91 41.03 9.68 35.93 12.42 124.14 66.61 54.31 12.19 42.90 14.65
1.36 1.37 1.46 1.32 1.31 1.37 1.41 1.46 1.49 1.43 1.37 1.29 1.41 1.44 1.45 1.44 1.41 1.27 1.50 1.53 1.53 1.49 1.53 1.35

Colorado Total Value-Added*

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*Colorado totals are understated due to the lack of data on student spending outside Northern Colorado. The totals are the sum of impacts for the entire state for direct university expenditures and non-student employee spending and for Northern Colorado only for students.
Total spending by the University, its non-student employees, and its students totaled $96.42 million in Weld County and directly supported 1,087.3 jobs within the County, leading to total value-added income of $51.21 million. Breaking value-added down further shows that those 1,087.3 jobs are earning employee compensation of $18.83 million, an average of $17,318 each; enhancing proprietor incomes by $5.3 million; earning other property income (rents, dividends, royalties) of $20.3 million; and leading to indirect business tax revenues (from excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses) of $6.79 million. The total impact column reported in Table 4 again reflects the direct expenditure effects plus the indirect and induced effects. The multiplier column shows the calculated multiplier estimated by the model results for output, employment, and value-added categories. The total output multiplier indicates that an extra $100,000 expenditure by the University, its employees, or its students made within Weld County would increase Weld County's total output production by an average of $136,000, including the $100,000 original increase in spending. Value-added would increase by approximately $141,000, and regional employment would increase by approximately 1 job. Direct, Indirect, and Induced Tax Effects In Phase I of this economic impact study, the direct tax revenue effects stemming from the existence of UNC were estimated. While the methodology used for those estimates was accurate given the data available during the Phase I analysis, Phase II data availability and the impact model refinement allowed the task force to estimate fiscal impacts that are much more detailed and deemed more reliable. Part of the advantage of employing an input/output impact modeling structure such as IMPLANs social accounting matrix is that the internal relationships defined within the matrix system allow for improved estimates of governmental fiscal budgeting impacts. The fiscal revenue impact estimates resulting from the IMPLAN analyses performed on each region are presented in Table 5.
UNC Economic Impact Analysis: Phase II Report Table 5. Tax Impacts UNC Operations Weld State and Local Govt. Sales Tax Income Tax Property Tax Other Tax Total Northern Colorado (Weld and Larimer Counties) State and Local Govt. Sales Tax Income Tax Property Tax Other Tax Total Colorado Total* State and Local Govt. Sales Tax Income Tax Property Tax Other Tax Total Non-student Employees Students
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Total Tax Impacts
$126,253 $37,813 $102,303 $109,551 $375,920
$762,189 $166,791 $616,197 $421,277 $1,966,454
$2,903,243 $441,531 $2,342,714 $1,432,270 $7,119,758
$3,791,684 $646,136 $3,061,213 $1,963,098 $9,462,131
$163,482 $51,271 $132,500 $135,478 $482,731
$865,239 $189,058 $699,466 $479,134 $2,232,897
$4,399,782 $677,226 $3,550,122 $2,084,169 $10,711,299
$5,428,503 $917,555 $4,382,088 $2,698,781 $13,426,927
$743,570 $241,701 $602,659 $461,540 $2,049,470
$1,187,728 $261,399 $959,947 $639,377 $3,048,451
$4,399,782 $677,226 $3,550,122 $2,084,169 $10,711,299
$6,331,080 $1,180,326 $5,112,728 $3,185,086 $15,809,220
*Due to lack of data, no estimates of the total tax impact of student spending outside of Northern Colorado are available. As a result, the student tax impacts presented here, which are for spending within Northern Colorado, understate the overall impact within the state.
The total tax impact for the state and local government sectors stemming from university, faculty, staff, and student spending within Weld County was over $9 million during the study period, while the effect for Northern Colorado exceeded $13 million.. The state tax impacts for the student expenditure model were not estimated because of the absence of student expenditure data with regard to the entire state. Therefore, the total tax impact column for the State of Colorado reflects only the sum of the tax impacts from university operational expenditures and faculty and staff expenditures.
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Comparison of UNC's Impact with other Institutions

The type of analysis performed in this report is not unique. Many institutions of higher learning around the nation have performed similar impact analyses in recent years. The political and social environments of many regions have resulted in skepticism of higher educations value, especially those institutions that partially rely on state-appropriated funds. It is primarily because of these environments and attitudes that universities around the country have allocated scarce resources into studying and publicizing their return to their host communities and states. Impact analysis is a valuable tool when employed correctly and with the right intentions. On the other hand, multipliers can be estimated by including a plethora of "expenditures" that can lead to inflated impacts due to doublecounting. The developers of the IMPLAN system advise that output multiplier calculation greater than 2.0 should be viewed with caution. That is not to say that a multiplier value greater than 2.0 is impossible, but it does warrant further analysis to test its accuracy. Table 6 shows the estimated output and employment multipliers from this analysis as well as those from similar impact studies performed around the nation. The results from the UNC study are consistent with those from other regions. Table 6. Comparison of Multipliers Among Selected Universities
University
University of Northern Colorado Purdue University Portland State University University of Nevada Reno Montana State University Bozeman DePauw University University of Colorado University of Georgia Athens University of Wisconsin Eau Claire Bowling Green State University Middle Tennessee State University Pittsburg State University Humboldt State University Lethbridge University
Study Year
2006 1996 1995-1996 2000 1995 2005 1999 1999 2005 2004 2004 2002 2004 2004
Output Employment Multiplier* Multiplier*

1.39-1.66 2.013 1.91 1.84 1.87 1.52 1.93-2.5 1.44 1.41 1.56 1.16 1.38 1.11 1.5 1.39-1.8 1.54 1.78 1.9 1.76 3.75 1.74-1.98 1.64 1.29 1.52 2.58 1.6 1.29 1.5
*The impact reports for these universities either explicitly reported these multipliers or provided the impact data enabling the estimation of these multipliers.
Conclusion
The charge of the economic impact task force was multifaceted; (1) to identify and measure the direct, indirect, and induced impacts accruing to the local, regional, and state economies from the existence of UNC; and (2) to examine the contributions stemming from the civic engagement of UNC and its faculty, staff, and students, which enhances the economic, social, and political health of the community.
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This report presents the analysis from Phase II of the study, which expands on the findings of Phase I by adding estimates of the indirect and induced impacts to the direct impacts. The study shows that the University has a substantial economic impact on the surrounding geographic area. The task force estimates that for each dollar spent locally, economic activity in that region increases by $1.39 to $1.66. The analysis also shows that 11 to 12 new jobs are created for each $1million of spending by UNC and its faculty, staff, and students. University spending in Weld County also generated state and local tax revenues of approximately $9 million in 2003-2004 and yielded a return on state appropriations of 198 percent. The task force also examined student preferences for a variety of potential amenities in the Greeley area (see appendix A). The most significant finding is that students desire improved employment and shopping opportunities in Greeley. Incorporating student suggestions into future planning initiatives may enhance student involvement in the community and may increase their economic impact in the region. Phase III of this study will examine the effects of the University of Northern Colorado on its surrounding community and state that are non-monetary in nature. These impacts are often ignored or underrepresented in such analyses. The goal of Phase III of this project is to identify the level of participation in civic, social, and faith-based activities by the university community. Such involvement enhances the quality of life and cohesiveness within the City of Greeley.
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Phase II Appendix A: Student Preferences for Greeley Area Amenities

In addition to questions on spending patterns, our student survey attempted to gauge student interest in potential amenities for the Greeley area. Specifically, we provided a list based on suggestions from a survey pre-test and proposals by UNC and Greeley officials and asked the following question: "For the following list of Greeley area amenities, please mark the five items that you think would most enhance your UNC experience." The purpose of this question was to determine the types of facilities or services that might enhance students' economic impact in Greeley by inducing them to spend more of their disposable income in the local area. This one of the many different types of intangible effects the task force will explore in Phase III of the Economic Impact Study. The responses to this question are summarized in Table A-1. Table A-1. Student Ranking of Selected Amenities
Amenity Choices
Greater employment opportunities Larger mall/better stores Nicer/classier/safer night/dance clubs More cultural/community activities that are student friendly Natural foods grocery store More under 21 establishments Downtown/campus shuttle for late night transportation More UNC visibility/atmosphere in the Greeley community Concert/sports venue 'Bar hop' street downtown Free designated driver 'taxi' type service Safer and more numerous bike lanes/paths More coffee shops Variety of ethnic food markets Closer or better access to a large recreational swimming pool Broader availability of UNC logo merchandise Greeley to Denver shuttle Arcades/laser tag Downtown parking garage Other (unspecified)
Percent Number of Students of Students Rank Ranking it in Ranking it in Top Five Top Five*
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 49.3% 41.8% 28.4% 27.1% 26.7% 26.6% 24.4% 22.9% 20.1% 19.3% 17.3% 17.2% 16.8% 16.7% 16.6% 16.1% 14.3% 9.0% 5.7% 5.4% 1130 960 652 621 613 610 560 525 461 442 397 395 385 383 380 370 327 207 130 125

*Number of respondents = 2294
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As Table A-1 portrays, the most desirable characteristic by far is "greater employment opportunities," with almost half (49.3 percent) of students ranking that item in the top five. This is followed by "larger mall/better stores" at 41.8 percent. "Nicer/classier/safer night/dance clubs" comes in as a distant third, with only 28.4 percent ranking it in the top five. Based on this survey question, it would appear that students are more interested in greater employment and shopping opportunities than additional entertainment options. It is important to note, though, that students may be thinking about both the short-term and the long-term in responding to this question. If the Greeley area were to add additional service sector jobs, the community might be able to keep students in the area during their college careers but would be likely to lose them to other localities after graduation. However, if Greeley can attract employers that are able to pay high wages and provide stable and rewarding careers, it is probable that more students would be likely to remain after graduation. This information should be useful in planning ways to enhance the long term economic impact of the University's students on the Northern Colorado economy.
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Phase II Appendix B: Direct, Indirect, and Induced Effects

To understand the significance of indirect and induced effects, recall the following example from the text: In 2004, UNC spent approximately $60,000 on purchases of paper goods from Northern Colorado Paper, also located in Greeley. This purchase is the direct output effect. In order to supply this output, Northern Colorado Paper must hire employees and other resources and compensate them through wages, interest, and rent. In addition, profit accrues to the business owners. These are the direct value-added income effects. The story continues as Northern Colorado Paper's employees, proprietors, and suppliers spend their direct value-added income on additional goods and services in the Greeley area. These purchases represent the indirect output effect while the income generated from the production of this output is the indirect valueadded income effect. Even when including these indirect impacts, the economic picture remains incomplete. The income generated from those indirect effects becomes the basis for a new round of spending. The goods and services produced in this and all subsequent rounds are the induced output effects. Similarly, the income generated from this and each subsequent round of production constitutes the induced value-added income effects. The indirect and induced effects are often referred to as "multiplier" effects because the ultimate impact is larger than the original expenditure. See the flowchart below for a visual demonstration of the expenditure chain discussed above.
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Phase II Appendix C: Data and Methodology

In this appendix, we outline information about the data sources, methodology, and assumptions used to estimate the indirect and induced effects. Analysis of University Operating Expenditures Total university expenditures for fiscal year 2003-2004 were taken from the universitys annual report. These expenditures were then adjusted for non-student payroll to isolate the amount that UNC spent on final goods and services. This adjusted figure was the basis for the expenditure analysis for Weld County, Larimer County, and the State of Colorado. In addition, University expenditure data for fiscal year 2003-2004 was provided in raw form by the UNC Accounting Office. We analyzed this data to establish UNC's expenditure patterns within Weld and Larimer counties, as well as Colorado, the nation, and beyond. Any spending that occurs outside the geographic region of interest is a "leakage" and is not counted in the calculation of the multiplier effects. To account for the leakages, we use measures called local (or regional) purchasing coefficients (LPCs or RPCs). A LPC is the fraction of all spending in a particular industry that is purchased from local companies. This depends of course on the industrial make-up of the regional economy. In other words, it depends on whether the local area is home to any companies within the given industries and, if so, the amount of purchases made from those companies. For example, the University spends approximately $120,655 for cleaning and laundry services; $3,875 of which is spent in Weld County, $26,943 in Colorado and $93,712 in Wyoming. This purchasing pattern produces a LPC of 3.21% for Weld County and 22.33% for Colorado. On the other hand, the Weld LPC for the cotton production industry is zero because there are no companies from this industry operating in Weld County. After applying this methodology to the raw data, we compared our results with the parameters of the IMPLAN estimated demand function for public higher education facilities and made necessary adjustments to ensure that the demand function was more representative of UNCs actual expenditure patterns. This demand function was then used in the three regional models employed in this analysis. Analysis of Faculty and Staff Expenditures Net payroll was used as a proxy for UNC employees' disposable income, defined as the income that consumers have available for spending and saving. Based on the net payroll for each employee, individuals were sorted into income strata so that the data could be used with IMPLAN. The demand patterns for households across income stratifications are estimated by the IMPLAN development group using the 1992 BEA Benchmark study. The accuracy of these estimates were extremely important to the integrity of our study, and therefore we performed a pilot comparison of the IMPLAN household demand
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patterns with the expenditure patterns resulting from the 2003-2004 Consumer Expenditure Survey (CES) conducted by the Bureau of Labor Statistics. In order to approximate the average expenditures by income stratification for Weld County residents, data from BLS published tables were used to develop a regional weighting scheme. These tables were Table 24: Selected western metropolitan statistical area and Table 34: Western region income before taxes. Both tables reported average annual expenditures; however Table 24 only reported an aggregated average for the Denver-Boulder-Greeley Metropolitan Statistical Area (MSA), while Table 34 reported average expenditures by income stratification in the West region of the U.S. Due to discrepancies between the two tables in the total number of consumer units reported in the West region, a weighted average of the total consumer units reported in western region data was computed. This was done by taking the total consumer units reported in Table 24 as a percentage of the total consumer units reported in Table 34. We then multiplied the number of consumer units reported in Table 24 by this percentage in order to reconcile the discrepancy. The adjusted number of consumer units in the West was then used to find the percentage of consumers in the West who reside in the Denver-Boulder-Greeley MSA. This is multiplied by expenditures for each income bracket from Table 34. The result is divided by income to yield the percentage of the West expenditures occurring in the DenverBoulder-Greeley MSA for each income category. Further, it was necessary to identify consumer expenditure patterns within each income strata. To do this, the average percentage of income spent for a wide variety of goods and services identified in the CES. This percentage was found by dividing the average expenditures for each type of good or service by the total average annual expenditure for each income bracket. After comparing this percentage with the IMPLAN household expenditure functions, the IMPLAN system was deemed to fall within acceptable parameters. Analysis of Student Expenditures The data on student spending patterns was gathered via an online survey. A request to participate was sent to all students enrolled in Spring 2006 (approximately 12,000). We received 2,296 responses (19% response rate). Information was gathered on a wide range of categorical and geographic purchasing patterns. Questions addressed car ownership patterns, type of residence (rent/own/on-off campus), and use of public transportation, banking, and health care. The survey probed spending patterns for gasoline, vehicle maintenance, rent and utilities, books, computers, groceries, restaurants, alcoholic beverages, entertainment, apparel, sporting goods, and personal services. These responses were used to create the demand function parameters employed in the IMPLAN impact modeling system.
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The survey also asked students to indicate their top five choices from the Greeley area amenities as discussed in Appendix A.
Phase II References
Agapoff, Jeanmarie, and Thomas R. Harris. Economic Impact of the University of Nevada, Reno on Nevadas Economy. UCED Technical reports. July 2000. University Center for Economic Development, Department of Applied Economics and Statistics, U of Nevada, Reno. 16 July 2006 <http://www.ag.unr.edu/uced/ reports/technicalreports/fy2000_2001/2000_01_03rpt.pdf>. Arik, Murat, Ph.D., and Christian Nsiah. Measuring the Economic Impact of Middle Tennessee State University. June 2004. Business and Economic Research Center, Jennings A. Jones College of Business, Middle Tennessee State U. 16 July 2006 <http://www.mtsu.edu/~berc/pdfs/mtsuimpact7.6.04.pdf>. Carroll, Michael C., Ph.D. Measuring Bowling Green State Universitys Impact on Ohios Economy. Oct. 2004. The Center for Policy Analysis and Public Service, Bowling Green State U. 16 July 2006 <http://www.bgsu.edu/offices/provost/ ImpactReport11-7-04.pdf>. Carroll, Wayne, Ph.D., and Victoria Udalova. The Regional Economic Impact of the University of Wisconsin-Eau Claire. Chippewa Valley Center for Economic Research and Development. Nov. 2005. U of Wisconsin-Eau Claire. 16 July 2006 <http://www.uwec.edu/Econ/research/cvcerd.htm>. Path: Current Projects. Griffin, Christiane W., and J. Alan Owen. Study Methodology. A Sound Investment in Colorado. 2000. Regents of the University of Colorado. 14 July 2006 <http://www.cu.edu/cuimpact/economic/study.html>. Halsted, Phil, et al. Pittsburg State University Economic Impact Statement. Pittsburg State U. 16 July 2006 <http://www.pittstate.edu/pres/Report652.pdf>. Humphreys, Jeffrey M., et al. Economic Impact of the University of Georgia on the Athens Area. Georgia Business and Economic Conditions 59.3 (May-June 1999). Selig Center for Economic Growth, Terry College of Business, U of Georgia. 15 July 2006 <http://www.selig.uga.edu/forecast/GBEC/ GBEC5699.PDF>. Ihara, Daniel M., Ph.D., and Alisande Evans. The Impact of Humboldt State University on the Economy of Humboldt County. 2004. Humboldt State U Department of Economics. 16 July 2006 <http://www.humboldt.edu/%7Eindexhum/projects/ impact.htm>.
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Johnson, Cel, Ph.D. An Economic Partnership: MSU Bozemans Impact on Montana. Economic Impact Study. May 1995. University Office of Institutional Research, Montana State U- Bozeman. 16 July 2006 <http://www.montana.edu/~aircj/ impact/>. McNamara, Kevin T. Economic Impacts of Purdue University on the Tippecanoe County Economy. Economic Impact Reports. 26 Apr. 1996. Purdue U Center for Rural Development. 16 July 2006 <http://www.agecon.purdue.edu/crd/ impacts.htm>. Olson, Doug and Scott Lindall, "IMPLAN Professional Software, Analysis, and Data Guide"; Minnesota IMPLAN Group, Inc.: Stillwater, MN <http://www.implan.com>. Shawcross, Jennifer, et al. Appendix Tables. Economic Impact of Portland State University. Applied Economic Research Group, Portland State U. 14 July 2006 <http://eclab.econ.pdx.edu/PSU/report.htm#app>. Stokes, Kevin B., and EconImpact. The Economic Impact of DePauw University on Central Indiana. 1 Mar. 2005. U of DePauw. 16 July 2006 <http://www.depauw.edu/univ/reports/DePauw_Economic_Impact_Report.pdf>. U of Ls Student, Alumni and Employee Impact Boosts Provincial Economy by $1.2 Billion. Notice Board Archive. 14 Oct. 2004. U of Lethbridge. 27 June 2006 <http://www.uleth.ca/notice/display.html?b=4&s=2111>. 2004 Annual Report. Greeley, CO: University of Northern Colorado, 2004.
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Glossary of Terms*
Direct Effects: Initial expenditure data to be applied to the predictive impact model. Represents the response (e.g. change in employment) for a given industry per million dollars of final demand for that same industry. (IMpact Analysis for PLANning) Software originally developed by the USDA Forest Service to do input-output analysis; development later privatized by the formation of the Minnesota IMPLAN Group, Inc. Inter-industry effects of input-output analysis; represents the response by all local industries caused by the iteration of industries purchasing from industries per million dollars of final demand for a given industry. (i.e.: Industry A buys inputs from local industries B and C. An increase in demand for goods produced by industry A will lead to $x increased production in industries B and C in order for A to meet the added demand.)
IMPLAN
Indirect Effects:
Induced Effects: The impacts of household expenditures in the input-output analysis; represents the response by all local industries caused by the expenditures of new household income generated by the direct and indirect effects per million dollars of final demand for a given industry. (i.e.: Industry A buys inputs from industries B and C. An increase in demand for goods produced by industry A will lead to $x increased production in industries B and C in order for A to meet the added demand which leads to industries B and C to hire additional employees and pay additional wages. Those additional employees will use that income to make purchases from local and regional businesses, which leads to increased production by those local merchants.) Input-Output Analysis: An economic model that allows the assessment of change in overall economic activity as a result of some corresponding change in one or several activities. Value-added: Income payments made by industry sectors in the form of wages, interest, rents, profits and indirect business taxes. Any spending that occurs outside the geographic region of interest.
Leakage:
Employee Compensation: The total payroll costs (including benefits) of each industry in the region. Proprietary Income: Payments received by self-employed individuals as income. Other Property Type Income: Payments for rents, royalties, and dividends. Indirect Business Taxes: Excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses.
* As defined in the IMPLAN Professional Version 2.0 Users Guide
UNC Economic Impact Analysis: Phase III Report
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UNC Economic Impact Analysis: Phase IIIContributions to Community

Executive Summary
Since its founding as the State Normal School in 1899, the University of Northern Colorado has had a strong and vibrant relationship with Greeley and the surrounding communities in Northern Colorado. Beginning with the institutions initial focus on the training of Colorados teachers, UNCs organizational mission has since expanded to the promotion of lifelong learning, the advancement of knowledge, research, and a commitment to service. This report highlights the many ways in which UNC contributes to Greeley, Northern Colorado, and the State of Colorado through the service commitments of its programs and people. The benefits of having an institution of a higher education in a community are well known, not only to business investors, but also to residents who want to live and work in a high quality environment. The City of Greeleys Comprehensive Plan for 2020 notes that the University of Northern Colorados preparation of teachers, musicians and artists, businesspersons, and nurses promotes Greeleys attractiveness as an education and training center for specialized employment and continuing education. As UNC and Greeley have each grown, the town-gown relationship has developed into an integrated university-city relationship which produces added value in social and cultural, as well as economic, dimensions. The first two phases of UNCs Economic Impact Analysis Report emphasized the spending and job creation impacts of the university, its employees, and students on the regional economy. This report will extend that examination to include the benefits of those university activities that simultaneously generate both student learning and value to the community. The reader will observe examples of learning activities that add to the quality of cultural life and are open to the public at low or no costactivities such as music recitals and festivals, international films, and athletic events. Many such activities also bring in visitors that generate significant dollars for the local economy. Furthermore, local government and nonprofit agency boards benefit from the volunteer contributions of the universitys employees, and students contribute, too, as many of the universitys experiential learning requirements require the completion of internships and community service projects. The larger state community benefits from UNCs hosting of public forums where important current issues, such as immigration and global sustainability, are discussed. Other benefits to the state community are derived from the provision of services where UNC has developed special expertise, such as audiology, cancer patient exercise rehabilitation, and organizational performance excellence.
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Finally, a formal analysis will be reported that examines the more tangible benefits of UNCs educational output. The value added of a UNC degree, that education premium that increases earnings potential, will be estimated as the return on investment for an individual graduate, as well as for the State of Colorado. A sample of the highlights within this Phase III report includes the following: Well over 100,000 individuals have graduated from the University of Northern Colorado over the last century, and almost 60% of existing alumni reside in the State of Colorado. Greeley/Weld resident UNC employees donated an estimated 99,400 hours in volunteered service to area nonprofits during the most recent yearan average of 200 hours per employee donor. Greeley/Weld resident UNC employees donated an estimated $1,455,088 in contributions to area nonprofits during the most recent yearan average of 5.5% of total salary for the 79% of employees responding. UNC teacher candidates contribute over 400,000 hours of work time to local K-12 schools each year. The UNC/Greeley Jazz Festival, held in Greeley each April, attracts over 10,000 participants from around the world and is one of Downtown Greeleys largest economic impact eventssecond only to the Greeley Stampede. UNCs James A. Michener and Howard K. Skinner Music libraries have a non-UNC borrower program which allows any Colorado citizen to access over one million books and over 70,000 newspapers, journals, music CDs, videotapes, and DVDs. UNCs University Center serves as a regional events center, hosting over 5,000 events annually, with attendance surpassing 200,000 guests. Over 900 volunteers in the UNC-housed RSVP (Retired Senior Volunteer) program contribute over $2 million in community services such as reading assistance, tax assistance, grocery shopping and home repairs, in one year alone.
Economic analysis shows that within a 10-year period, Colorado receives a 55

percent annual return on its share of tuition for each UNC graduate.
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Learning activities that add value to the communitys quality of life

UNC has played a special role in the cultural life of Northern Colorado since the early 20th century. Students and faculty alike have strongly supported The Greeley Philharmonic Orchestra since its founding in 1911, both as performers and as an audience. This university partnership with the oldest orchestra in continuous existence in the state of Colorado, continues today as Dr. Howard K. Skinner (former Dean of the College of Performing and Visual Arts and former UNC President) recently completed his 37th year as conductor and music director of the Philharmonic.
UNC making a difference

After 17 years of experience in European opera companies and concert halls, Diane BoldenTaylor, professor of voice within the College of Performing and Visual Arts, is happy in her role as mentor to UNCs voice students. I teach my students what I know from real life experience. I also tell them what its like to be in an arts profession and at the same time have family and household responsibilities. Taylor is currently in her 14th year at UNC and is a veteran international opera performer, having sung lead roles throughout the U.S., Europe, Asia, and Africa.
The College of Performing and Visual Arts (PVA) continues this heritage by playing a vital role as impresario and sponsor of the arts in service to the surrounding communities and as a model of excellence in the state in cultural presentations and productions. The UNC/Greeley Jazz Festival is the largest event of its kind in the nation and the longest-running jazz festival in Colorado. It is one of downtown Greeleys largest economic impact events, second only to the Greeley Stampede. The festival is both a cultural cornerstone of the region and an educational outreach effort that draws over 10,000 participants each year from throughout the country. It presents outstanding, internationally known jazz artists and offers hundreds of hours of educational activities. The festival is held each April in five venues in downtown Greeley, including the Union Colony Civic Center. The Little Theatre of the Rockies, UNCs professional summer stock theatre company, has been providing audiences in northern Colorado with entertaining theatre productions for over seventy years. It is the oldest continuous running summer stock theatre west of the Mississippi and attracts over 15,000 ticket buyers to Greeley. In 2005-06, the School of Theatre Arts and Dances Main Stage productions during the academic year sold over $26,000 in tickets sales. Combined, the summer and academic year theatre and dance productions of PVA serve over 30,000 audience members. In addition to the many PVA program offerings, there are a variety of other cultural activities available on the UNC campus open to the public. Over the decades, numerous Greeley-area residents have capitalized on opportunities to view art exhibits and attend receptions in the Mari Michener Gallery at UNCs James A.
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Michener Library. Such events are hosted at this facility six times annually. The Friends of the UNC Libraries, an organization in its 34th year, sponsors these exhibits, as well as faculty and guest lectures, holiday concerts, and monthly books sales, all of which are open to the public. Unlike the stereotypically cold and totally silent libraries of the past, Michener library is a welcoming place for visitors, including a variety of group seating areas in addition to a main floor coffee cart that offers a full array of coffee and pastries and pleasant group sitting areas. UNCs libraries also maintain a non-UNC borrower program which allows any Colorado citizen to use and borrow materials in the James A. Michener and the Howard K. Skinner Music libraries. The libraries collections include more than one million volumes, over 1,700 print newspaper and journal subscriptions, over 67,000 music CDs and videotapes, plus 2,100 DVDs, not to mention numerous electronic databases and information resources. Michener library is also a Federal Depository for documents by the U.S. government. Access and references to all of these materials are provided to all U.S. citizens. There are also several archival collections housed in Michener library available to the public, including the James A. Michener Special Collection, the Sports Archives, and the University Archives, to name only a few. Planning is underway to celebrate James A. Micheners 100th birthday in 2007 with a variety of events open to the public. UNC making a difference
Dr. Keiko Krahnke, Assistant Professor of Management in the Monfort College of Business, urges her students to create value and meaning in their lives as their first priority. If we do the right thing, the resulting synergy will generate the material things we need. Dr. Krahnke is currently in her eighth year at UNC and was recently certified in the emerging business field of Appreciative Inquiry at Case Western Universitys Weatherhead School of Management.
Other colleges sponsor a wide variety of conferences, lectures, and other events open to the public and the university community. For example, the College of Humanities and Social Sciences (HSS) features the Rosenberry Writers Conference, an annual 3-day conference. The sixth such writers conference in Spring 2007 has been constructed around the theme of Off the Map: Writing Beyond Borders and will feature writers from Nigeria, India, Sri Lanka, and Thailand.
The Monfort College of Business (MCB) partners with the UNC Foundation and Northern Colorado Business Report each year to bring a series of national speaker events to campus that are open to the northern Colorado community as well as to students, faculty, and staff. "Business Plus speakers for 2006-07 include the senior regional economist from the Federal Reserve Bank, the vice president of Quality for Ritz Carlton International Hotels, the CEO of Cessna Aircraft, and the radio host of National Public Radio's Marketplace program. There are also many other UNC events that add to the quality of community life in Northern Colorado, recent examples of which include Elderhostel programs on James Michener, Water: Liquid Gold, and Bread Lines to Front Lines.
UNC Economic Impact Analysis: Phase III Report Finally, two other examples of university programs that are open to the public and to students are Academic Excellence Week and the International Film Series, both sponsored by UNCs Honors Program. Academic Excellence Week, held every spring, includes Research Day panels where students from across the campus present their scholarly research in sessions organized by sponsoring faculty. The International Film Series, established at UNC in 1973, features 8-10 films per year not available in other Northern Colorado venues. Recent titles include Irelands Breakfast on Pluto, the French film Cache/Hidden, Chinas Mountain Patrol: Kekexili, the USAs own Outfoxed: Rupert Murdochs War on Journalism, and the critically acclaimed Israeli film Paradise Now, which was paired with a special lecture by Middle Eastern expert and former Lebanese hostage Thomas Sutherland. The screening of South Africas Duma, was a family movie that was made available to the public free of charge.
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Duane Banks, who grew up in Grand Junction, came to UNC to play baseball, but received an education in the process. Banks remembers thenbaseball coach Pete Butler, namesake of Butler Hancock Hall, with gratitude. Without a doubt, he was the most influential in what I did. He was a great manabsolutely the best. He took boys and made men out of em. After graduating in 1964, Banks went on to a 28-year career as head baseball coach at the University of Iowa, leading the Hawkeyes to three Big Ten titles. He was later voted into the American Baseball Coaches Hall of Fame. Fiftyseven of his players earned professional contracts; five made it to the major leagues.
Learning activities that bring visitors to Northern Colorado

Many of the events held at UNC not only enrich the communitys social and cultural life but also attract visitors to the region, generating significant tourism dollars for the local economy. In addition to its direct sponsorship of activities open for public participation at low or no cost, the campus also serves as a major area events center. UNCs University Center facility hosts over 5,000 events annually, with total event attendance surpassing 200,000 guests. The Greeley Convention and Visitors Bureau estimated that for 2004, the total dollars generated by events sponsored and/or held at UNC totaled over $3.8 million. In that year alone, just six UNC-sponsored events accounted for over $2.2 million in economic revenue. These events included: Teacher Employment Days, $111,000; the UNC Jazz Festival, $806,000; May Graduation, $481,000; the Wrestling Cadet Nationals, $685,000; Homecoming, $111,000; and Family Weekend, $74,000.
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Dave DeForest-Stalls graduated from UNC in 1977 after studying zoology and was a nine-year veteran defensive tackle for the Super Bowl Champion Dallas Cowboys. His NFL career also included stints with the Los Angeles Raiders and Tampa Bay Bucaneers. Today, he is CEO of Big Brothers & Big Sisters of Colorado. My education at UNC prepared me for all of those strange and wonderful paths. In 1994, with the help of a number of at-risk youth, including gang leaders, graffiti artists, and members of the homeless community, Dave created The Spot, an award-winning, nonprofit nighttime youth center in downtown Denver. In May 2003, DeForest-Stalls received the Humanitarian of the Year Award by 5280 Magazine.
In addition, UNC hosts 80 to 100 intercollegiate athletic events a year. Visiting athletic teams spend an estimated $285,000 for food and lodging annually while in upstate Colorado. The estimate is based on spending for food and lodging by UNC athletic teams, which are comparable in numbers of team members and games played away from home. During the summer, UNC also plays host to hundreds of non-university students who visit the school to participate in football, soccer, basketball, wrestling, and volleyball camps. There are also a multitude of national meetings and conferences that UNC sponsors that bring visitors to Northern Colorado. Two recent examples include a meeting of the American Conference on Irish Studies and a national gathering to mark the 50th anniversary of Brown vs. the Board of Education, both featuring presentations by UNC faculty.
Other campus learning programs position campus faculty and students within the area community, generating dollars for the regional economy. The natural science programs, as but one example, sponsor numerous field trips every year that involve car rentals and purchase of provisions. For a complete list of events sponsored and/or held at UNC during 2004 and an estimate of the tourist dollars generated, see Appendix A.
Learning by doing and giving: employee and student service

Research has shown that higher levels of education are associated with higher levels of participation in volunteer activities. Approximately 29 percent of adults volunteer through an organization. But among college graduates, the volunteer rate is 46 percent over twice the 22 percent rate for the population of high school graduates, according to a 2004 College Board report. So it should be no surprise that a high percentage of University of Northern Colorado faculty, staff, and students have a high level of civic engagement.
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UNC graduate Bruce Broderius has been a middle school teacher, an assistant principal, and Dean of UNCs College of Education. Now retired, Dr. Broderius is now President of the Greeley-Evans District 6 School Board. I have seen that when UNC people work in the community, there is a symbiotic relationship and the university gains respect and support. The university has an exponential impact on improving the quality of a community through the contribution of skills. Dr. Broderius, along with other community activists, helped found the High Plains Chautauqua, a week-long summertime tent program where scholars take the stage and recreate historical and literary figures through living history portrayals. More than 300,000 people have attended Chautauquas performances in Colorado.
To investigate the extent of service and volunteer activities of university personnel, an electronic questionnaire was randomly distributed to 306 faculty, staff, and administrators, who were then asked to share their responses on several additional dimensions related to community linkages. The results (31.4% response rate) underscore the number of UNC employee connections maintained with other organizations and illustrate how UNC further enhances the vitality of its neighborhood. Highlights of the survey results are as follows:
(1) Of the respondents living in Greeley/Weld County, 73 percent indicated that one or more members of their household donated time to Greeley/Weld County nonprofit, government, and human service organizations, with each household averaging over 200 hours in donated time annually. Assuming a representative sample, these contributions of time would amount to an estimated 99,400 total hours of donated time annually by Greeley/Weld resident UNC employees. (2) Seventy-nine percent of the Greeley/Weld County resident employee respondents also reported donations to community nonprofit groups. On average, such donations amounted to 5.5 percent of the employees annual income. Again, assuming a representative sample, these employee donations would amount to an estimated $1,455,088 of total employee donations by Greeley/Weld resident UNC employees. (3) The total number of organizations that benefit from UNC employee volunteerism, as well as the variety, are impressive. Respondents in the sample identified 85 specific entities; a list of these is in Appendix B. A substantial number of employees also indicated that they contributed time and/or money to other organizations (e.g., churches), but did not

While serving as Dean of Students and working on her doctorate degree at UNC, Dr. Jean Schober Morrell was a well-known contributor to Greeley and Weld County civic activities. In addition to her major leadership roles with the American Cancer Society, the Centennial Rotary Club, and the Weld County United Way, Dr. Morrell was a charter member of A Womans Place home for victims of domestic violence. I want students to know that you can make a difference whether it is in the life of one child, in your classroom, in your office, in your family, in your community, or in the world. Reflecting her 25-year tenure as UNC Dean of Students, Dr. Morrell said, I just loved this job. It has been rewarding to help students learn to solve their own problems and to be an advocate and to see students grow in their leadership abilities.
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name them. Clearly, all of these organizations are enhanced by the commitment of UNC employees. UNCs students also have been active in contributing to community service activities, either directly through the classroom or through extracurricular activities. One of the universitys largest contributions to the community is through the placement of teacher candidates in local schools. Each of the 533 candidates recommended for licensure in 2005 spent at least 800 hours in the schools in observation, tutoring, and student teaching. Evidence from the College of Education and Behavioral Sciences (EBS) has shown that this interaction augments and directly affects the learning of Colorado P-12 students. A conservative estimate of these candidates combined contributions comes to at least 426,400 hours of in-school work time. The UNC teacher candidates at the Center for Urban Education in Denver are required to spend over 3,000 hours each in apprenticeship training. More than 160 students participated in United Ways Make a Difference Day last year. Each of these students contributed roughly four hours to various projects around Greeley, producing a combined contribution of over 640 volunteer hours for that one event alone. As part of the Bears Giving Back program, which is intended to help develop links between the UNC athletics program and the community, the UNCs mens and womens basketball teams held the fifth annual Martin Luther King Jr. Day Youth Basketball Clinic. Nearly 250 youngsters took part in the 2005 camp, an increase of 75 attendees from the previous year.

Anita Molina, was awarded the Robert and Ludie Dickeson Presidential Prize for Leadership in 2006. An economics major, Anita served as president for both the Society of Economics and Students in Free Enterprise (SIFE), an organization which organizes a variety of community projects to advance economics education. She was active in the HSS college student council and represented our university at AAUP (American Association of University Professors) and UNC days at the state capitol. In the community, she has served as a translator at the NCMC Emergency Ward and was a volunteer at the Weld County Humane Society. Despite her devotion to service, Anita maintained high academic performance, which helped to earn her the Ann Garrison scholarship in 2005. She now is employed at the U.S. Census Bureau in Washington, D.C.
There are also many opportunities for students to volunteer their time to the community through extracurricular activities that support academic endeavors in the various colleges. For example, in the College of Humanities and Social Sciences (HSS) the SIFE (Students Interested in Free Enterprise) organization engages students in many service-learning projects, such as assisting senior citizens in learning computer skills and giving presentations on budgeting in local schools.
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In the Monfort College of Business (MCB) alone, there UNC making a difference UNCs support of four cultural are nine student professional centers, including the Cesar Chavez organizations with over 300 and the Marcus Garvey centers, members that require a shows the strength of the commitment from student institution, according to UNC grad members to give back to the and former Denver Mayor, Wellington Webb. Webb now runs community through Webb Group International, a development consulting volunteerism. Several programs business, and is president of the Colorado Black Chamber help strengthen connections of Commerce. Webb became Denvers first African between the areas community American mayor in 1991, and focused his three terms in and students, including the office on children, economic development, open space, and public safety. VITA (Volunteer Income Tax Assistance) program and the Colorado Business Resource Center. On average, over 50 students per semester volunteer 15-20 hours of support for this program, not including the three students who manage the Center as an internship experience. MCBs service and honorary organizations, such Alpha Kappa Psi and Delta Sigma Pi, have sponsored numerous events to benefit community organizations including the Weld County Food Bank, Habitat for Humanity, the Guadalupe Center, the Weld County Humane Association, and Race for the Cure in addition to volunteering for Kids Place and the Boys and Girls Club. MCB also offers several ways that students can enhance their learning and contribute to the community at the same time. Entrepreneurship students have worked with the city to create a data base of local businesses in an attempt to better define the culture and status of the local business community. This innovative partnership in an economic gardening project distinguishes UNC as a key agent in transforming the community into a more fertile business environment. Another group of MCB entrepreneurship students is currently working with the Downtown Development Authority (DDA) to construct a feasibility analysis that can help the authority to develop a viable and contemporary vision and mission for guiding the development of Greeley's downtown area. In addition to hosting the Greeley/Weld Small Business Development Center through the State's SBA program, MCB and its Colorado Business Resource Center serve as a small business call center for the state. On average, 50 students per semester volunteer an average of 15-20 hours each in answering phone calls from aspiring and maturing small business owners.
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Activities that add value to the greater society

There are several outreach UNC making a difference programs and public offerings in Ken Williams, a UNC grad in HSS that are collaborations with journalism, has had a successful the other colleges and campus professional career in media relations agencies, especially the cultural and fund-raising for higher education. He is now using all the skills learned at centers, as well as the community. UNC in his work as CEO of the For example, HSS has established Centennial Chapter of the American a Community Development and Red Cross. Serving on the frontlines Outreach Institute to assist after the Katrina disaster reminded him community and non-profit groups, of the importance of community he learned at UNC and motivated him to concentrate harder on helping individual support community-based families and businesses to prepare for disasters that could initiatives, and conduct social, occur in our area, including floods, fire, or a pandemic flu. economic, and cultural research in He now gives presentations on Continuity of Operations support of community Planning for Northern Colorado Businesses. enhancement programs. The Institute has joined 19 other community partners in a Colorado Trust Immigration Integration and Refugee Family Initiative. HSS recently sponsored two symposia: one on cultural, geographical, historical, and economic impacts of hurricane Katrina and the other on the racial, ethnic, economic, and legal implications of immigration to the U.S. Numerous UNC professional programs have also developed student learning UNC making a activities that provide specialized difference services to area residents at low or no There is a crisis today in cost. One such example is the Rocky nursing because there arent enough educators out there to Mountain Cancer Rehabilitation teach nursing, according to Institute (RMCRI). This program has Dr. Debra Leners, Professor provided free, three-month exercise of Nursing and Director of programs for over 550 cancer survivors UNCs School of Nursing in the since its establishment in 1996, with the College of Natural and Health Sciences. Thats why there arent enough majority of these beneficiaries residing nurses. And thats why UNC is focusing on in Northern Colorado. The RMCRI educating nurse educators. Our masters includes service learning experiences program has tripled in size the last three years. for students in the Exercise Despite the high market demand for nurses, Programming for Cancer Survivors there are still those who sacrifice monetary benefits to share their knowledge to train new program, in addition to internships and nurses. People who come back to teach love practicum for these students and others working with students. Theyve seen it all. They in the health fields. The exercise want a different challenge. programs are designed to augment medical treatment by reducing the fatigue and depression that cancer patients often face. The three-month treatment program includes multiple assessments and the creation and supervision of a written
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exercise program. The RMCRI also provides summer workshops, which attract health care providers internationally for training and certification in cancer exercise. The School of Applied Psychology and Counselor Education operates a Psychological Services Clinic that offers services to people in the community at at a fraction of fair market value. The school also has several internship programs for its masters students in community and school counseling that serve clients at no cost through mental health and family treatment centers and local schools. The Speech-Language Pathology and Audiology clinic provides services, including hearing assessments, hearing aid fittings and sales, speechlanguage assessments and speechlanguage therapy for the community.

Professor of Africana Studies Dr. Anthonia Kalu came to the U.S. to study, leaving her homeland of Nigeria after a painful civil war. While her passion is literature, she enjoys working with her students, mostly Caucasian, and seeing them grow as they learn about African contributions to our civilization. I realize for my students, I am the Africa that they can know and see. A UNC faculty member since 1989, Anthonia has received distinguished scholar awards from the University of Notre Dame and Spellman College. Her collection of short stories Broken Lives and Other Stories, has brought worldwide attention to the plight of women, children, and men whose lives have been battered by war in their Nigerian homeland.
There are several programs at UNC aimed at enhancing the education of high school students. One example is a Summer Enrichment Program operated by the School of Special Education for over 30 years. SEP features two separate two-week sessions for gifted and talented learners to experience time on campus in enrichment classes and creative activities. Another example is the Frontiers of Science Institute, a 47-year-old program dedicated to boosting the scientific aspirations and achievement levels of Colorados high school juniors and seniors. For UNC making a difference six weeks in the summer, students thrive in a When Doug Bowen graduated from UNC in 1978, he had a degree in learning environment charged by enthusiastic business administration and was on his instructors and mentors, boosting students selfway to a career in business. But he has confidence and facilitating self-discovery. managed to combine his UNC degree
with his passion for teaching. He taught business for several years in the Pagosa Springs area. Today he is director of an alternative high school in Pagosa Springs. The high school, part of the Archuleta County Education Center, serves children facing a variety of challenges, including low income, substance abuse, behavioral challenges and legal problems.
In an innovative program designed to foster the bringing of books and children together, the Rocky Mountain Childrens Literature Conference classroom brings teachers (P-12), school and public librarians, teacher candidates and others together with authors and illustrators.
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The university also lends its expertise in teacher training and UNC making a difference the humanities in a variety of Dr. Katrina Rodriguez, Assistant other ways to contribute to the Professor of Higher Education and Student Affairs leadership says We wider community. EBS want to create better environments so participates in a consortium that that we can meet the needs of students. recruits teachers and provides We want our students to be successful. technical assistance for Navajo While still going to school full time at schools through a Memorandum UNC, she served as the first director of the Stryker Institute for Leadership Development and also of Agreement with the President as coordinator of the Womens Resource Center. The of the Navajo Nation. During Stryker Institute supports leadership development for the last 15 years of this students from under-represented groups, particularly program, UNC has prepared those who are women, people of color and non-traditionalover 850 elementary school aged students, and individuals with substantial financial need. teachers with Navajo language and culture and history competencies. HSS also has several programs that focus on training teachers for the Navajo Nation. In addition, a U.S. Department of Education grant has asked humanities faculty to integrate the stories of the Southern Ute and Ute Mountain communities of the Four Corners region of Colorado into the mainstream curriculum. Another effort to improve cultural understanding includes the work of HSS faculty with the Cesar Chavez Cultural Center to sponsor the Latino/a Youth Leadership Conference at UNC that was attended by over 500 middle school students from surrounding schools in 2006.

After 14 years as Executive Director of Greeleys Transitional House, Linda Akers is back home at UNC as coordinator of RSVP. Undergraduate work at UNC that included training in research, writing, and sociology statistics helped her to excel in graduate school when she went on to get a degree in social work that prepared her for a career in community service. A sign posted on her in-box summarizes her philosophy of life: Service is the rent we pay for being. It is the very purpose of life, not something you do in your spare time.
UNC has initiated special outreach for area nonprofit agencies through program studies, workshops, and on-campus support. Each summer, for example, MCB hosts a Nonprofit Leadership seminar event designed for the practicing executives of the over 15,000 Colorado nonprofit organizations. Participants receive leadership training and support from a variety of resident faculty, as well as regionally and nationally known experts in the nonprofit field. The 2006 event included presentations by MCB Professor of Management and human resources expert Dr. Milan Larson, Bonfils Stanton Foundation President Dorothy Horrell, and President and CEO of Delta Dental Plan Kathryn Paul, among others.
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In an active community partnership, the nonprofit educational project of the School of Communications called Talk, Share, and Care garnered sponsorships from local businesses to deliver educational packages to over 500 children at an elementary school outside of New Orleans after Katrina. And finally, UNC has had a long and special relationship with the Weld County RSVP (Retired and Senior Volunteer Program). RSVP has been sponsored at UNC for over 33 years, a unique relationship among these programs nationally. The RSVP operations on campus which includes community service programs with nearly 900 volunteers aged 55 and older from Weld County. These volunteers participate in projects such as reading assistance, tax assistance, grocery shopping and home repairs. This federal government and local non-profit collaboration is 75 percent federally funded with 25 percent of its funding provided locally from United Way and other sources. A recent report showed an estimate of the huge contribution RSVP volunteers made to the Weld County area was over $2 million in 2005-06 alone.
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Visual impact of UNC alumni regionally, nationally, and internationally

In order to provide further evidence of impact beyond the numbers, the taskforce worked with the UNC Geography program and the UNC Alumni Office to develop a set of visuals designed to illustrate the current reach and concentration of UNC alumni in Colorado, the United States, and around the world. The following visuals are based on a total definable population of 99,291 alumni records on file in the UNC alumni database. View of State Impact As shown in Figure 1, there are currently 58,008 alumni on record for whom there are mailing addresses within the Colorado borders. As would be expected, the highest concentration is north and south along the front range of the Rocky Mountains. However, it also clear that the reach of UNC extends throughout every Colorado county and most cities.
Figure 1: Colorado Map of UNC Alumni
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View of National Impact Figure 2 illustrates what will undoubtedly surprise somenamely, the significant number of graduates who now reside across the United States. As shown, the highest concentrations are consistent with the general U.S. population distribution on the east and west coasts. Yet, here again, there are UNC graduates currently residing in all 50 U.S. states, with most states boasting a significant UNC resident base.
Figure 2: U.S. Map of UNC Alumni
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View of World Impact And finally, Figure 3 illustrates the distribution of UNC alumni around the world. Certainly, the proportion of total graduates in this category is small, but there are noticeable concentrations in certain parts of the world, such as the Pacific Rim, Canada, and the Middle East. Figure 3: World Map of UNC Alumni
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UNC Delivers Return on the Investment in Education

This section of the Phase III study provides estimates of the return to the investment in education at UNC, both for the State of Colorado and for an individual UNC graduate. The analysis considers not only the initial financial investment, but longer term additional benefits that result from a college education as well. Highlights: The benefit to the State of Colorado for its investment in UNC is multifaceted: o Within a 10-year period, Colorado receives a 55 percent annual return on its share of tuition for each UNC graduate. o The State receives an additional health dividend estimated at over $250,000 per year for each graduating class as a result of improved work productivity among college graduates. o The Organization of Economic Co-operation and Development (OECD) estimates the social rate of return to education in the United States is 13%. Based on this estimate, UNC makes a substantial contribution to productivity growth in Colorado. o UNCs emphasis on educating teachers reinforces the social dividend of education throughout the state. The rate of return on an individual graduates investment in a UNC education exceeds that of Standard & Poors pension fund investments.
Return on Investment for the State of Colorado

The State of Colorado receives several benefits from its investment in UNC. This section explains the source of each of those benefits and provides estimates of their value. Contribution to Tuition In 2006, the State of Colorados contribution to each UNC students tuition was $2,064 on average (39 percent of total tuition cost). The state benefits from the students education in many ways. One of the most important is through the spending multiplier. After graduation, UNC students earn more than the average worker without a college degree. When the extra income from a college degree is spent, it becomes income for someone else. The process repeats itself when the second person spends a portion of that income, which becomes income for a third person, and so on. Because many people save a portion of their income or spend it out of state, the effect eventually dies out, but not before substantial additional economic activity is generated within the state.
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After adjusting for student attrition, it is estimated the state spends a little over $11,000 on tuition subsidies for each in-state UNC graduate. The internal rate of return on the states contribution, based on the value of the multiplier effect to the state, is over 55 percent within 10 years of graduation (see Figure 4). This state contribution is defined as the burdened share, which is the cost per graduate accounting for attrition. This internal rate of return is substantially greater than the annual rate of interest that could be earned on most other investments, meaning the investment in education is a wise use of state funds from a purely business standpoint in addition to the many intangible social and cultural benefits. Figure 4
60%
50% State's ROR on Burdened Share of Educational Investment 40% Return 30%
20%
10%
Years since students graduation 0 5 10 15 20 25
0%
Source: Peter Davidoff
The assumptions made regarding student attrition from UNC and the proportion of graduates earnings-premium spent rather than saved ensure the estimated rate of return is quite conservative. Modest adjustments in these assumptions would imply an even greater return on the states investment. The methodology used to calculate the internal rate of return on the states contributions to UNC graduates is detailed in Appendix C. Health Dividend There is second benefit for the state from college degrees due to a better understanding of health issues and better reasoning and decision-making abilities, attributes provided by the critical thinking processes taught at UNC. Cutler (2006) notes a strong correlation between education and health. Specifically, he estimates that four additional years of education lowers the probability of reporting fair or poor health by six percentage points (from a mean of 12 percent) and reduces lost days of work to sickness by 2.3 days each year. Multiplying this estimate by the approximately 700 UNC graduates per year who work in Colorado yields 1,610 workdays added to the state economy. Data from the Colorado Department of Labor indicates an average hourly wage of $19.71 or $157.68
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per day, meaning this benefit adds approximately $254,000 to the Colorado State Product annually for each graduating class. Once again, this is a conservative estimate because college graduates are likely to have higher than average wages. Contribution to Colorados Growth Rate The Bureau of Economic Analysis (BEA) estimates Colorados growth rate at 4.3 percent. This growth rate is comprised of 21 components, shown in Figure 5. The Original Growth Component indicates the BEA estimate of each sectors contribution to the growth rate. The educational sectors contribution is estimated to be 0.46 percent.
Figure 5
0.9
Colorado Growth Rate 4.3%

0.8 0.7 0.6
value of GSP component
Original GDP Growth Component Growth Component less Educational Social Return
0.5 0.4 0.3 0.2 0.1 0 Arts Entertainment Utilities Transportation Construction Wholesale Trade Health Care Finance and Insurance Real Estate Information Agriculture Education Administrative Nondurable goods manf Accommodation & Food Services -0.1 Durable goods manf Management Government Professional RetailTrade Mining Other Augmented Educational Return
Source: BEA
Figure 2 also shows an adjusted estimate of the contributions of each sector that captures educations social rate of return through the accumulation of human capital, or knowledge and skills. The Organization of Economic Co-operation and Development (OECD) estimates the social rate of return to education in the United States is 13 percent. Consequently, each growth component of the Colorado State Product (CSP) was reduced by 13 percent and the difference was added back into the Education Services component. This is an indicator that the high level of educational attainment in Colorado has been a catalyst for the states economic growth. The discussion in this section so far shows the effect of education in general. The contribution of UNC specifically cannot be estimated directly given available data, but two considerations suggest the impact is substantial.
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First, based on the number of degrees conferred, UNC is the fourth largest contributor to the education growth component, providing over 10 percent to the educational premium fueling CSP growth (see Figure 6). Figure 6
0% UC Boulder Colorado State Univeristy UC Denver University of Northern Colorado Metro UC Springs UC Health Sciences Mesa State Fort Lewis Colorado School of Mines University of Southern Colorado Adams State Western State 5% 10% 15% 20% 25% 30%
Contribution to the Educational Component of the CSP Growth Rate
Second, UNC educates a large number of Colorados P-12 teachers and these graduates make a unique contribution to Colorados regional growth (See Figure 7). As these alumni disperse throughout Colorado, they bring with them their human capital and ability to embrace new ideas, contributing not only their portfolio of educational investment, health, and social returns to the state, but also the innovation resulting from new ideas they have learned at UNC. While all our graduates further Colorados stock of human capital, our teaching graduates bring new learning tools and techniques to the schools in which they teach. These tools and techniques enhance the respective regions ability to recognize and interpret technological improvements, to improve inter-firm technology transfer, and to better the regional innovation system, thereby enhancing the contribution of education to the growth of CSP.
UNC Economic Impact Analysis: Phase III Report Figure 7
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Source: David Diggs
Rate of Return in Income for an Individuals UNC degree

The return on education considers the costs of an education and the income earned after graduation. The financial return, expressed as a percent, is the implicit interest earned on the educational investment over time. The rate of return for an individual is estimated in the same way as that of the state. Initially, there is a four-year expenditure, followed by a wage premium. In-state UNC students pay about 61 percent of their tuition, which was $3,276 in 2006, according to the UNC Office of Budget and Institutional Analysis. The annual return 10 years after graduation is 8 percent and after 15 years is 11 percent (see Figure 8).
UNC Economic Impact Analysis: Phase III Report Figure 8

20% Augmented ROR - Education and Health Dividend
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15%
10%
ROR on educational investment
5%
0% 0 -5% 5 10 15 20 years since graduation 25 30
-10% graduation -15%
The health dividend accrues to individuals as well as the firms they work for. The return on the initial costs of education is better because of the health dividend. Figure 8 also indicates the return including the health dividend. It reaches 15 percent 10 years after graduation and 17 percent 15 years after graduation. These augmented educational returns are better than those made by Standard & Poors pension fund investments, which average about 10.7 percent over 10 years with the additional return from dividends.
Summary
Both the state and the student benefit in a significant and positive way from investing in a UNC education. The State of Colorado benefits in several ways. The states contribution to each in-state graduates tuition yields a return of over 55 percent within 10 years of graduation. The health dividend for a student also contributes to the states work productivity, providing by way of more workdays an estimated value of approximately $250,000 per graduating class per year. In addition, Colorados economic growth improves due to a social rate of return due to education. College graduates reason better and make better decisions, as well as enjoy healthier lives. UNC graduates a large number of P-12 teachers who also remain in the state and enhance educations contribution to the states economic growth even more than other UNC graduates. These estimates show that the financial investment made by a student or students family has a return of 17 percent over a 15-year period when the health dividend is also considered. The correlation between education and health is due to better decision making and reasoning, abilities that are aligned with the purposes and goals of the university.
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Phase III Appendix A: 2004 Estimated Tourism Impact of UNC Sponsored Events and/or Events Held at UNC
Name of Group/Event Small Business Center State Conf. Nat'l 50th Anniv. Brown vs. Bd. Of Educ. Center of Academic Integrity Conf. UNC Teacher Employment Days UNC Jazz Festival UNC Graduation Colorado Special Olympics UNC Elderhostel Michener Nike Swim Camp Law Enforcement Exploring Post Adv. Miss Teen America Contest NCA Cheer Camp Athletes In Action Swim Camp Benson Tennis Camp 1 UNC Wrestling Cadet Nationals Benson Tennis Camp 2 UNC Point Guard College Benson Tennis Camp 3 UNC Volleyball Camp Session 1 Benson Tennis Camp 4 Elderhostel: Water Liquid Gold UNC Volleyball Camp Session 2 Benson Tennis Camp 5 UNC Volleyball Camp Session 3 Vogelsinger Soccer Camp UNC Volleyball Camp Session 4 UNC Leadership Institute Benson Tennis Camp 6 Total Soccer Camp Master Nakayama's Karate Elderhostel: Bread Lines to Front Lines Est. Nights Booked 30 50 10 300 1300 1300 550 20 25 150 50 40 25 40 500 40 50 40 25 40 20 25 40 25 50 25 25 40 125 50 30 # Nights 2 2 1 1 2 1 1 5 4 6 2 3 5 5 5 7 5 5 2 5 5 2 5 2 5 2 1 5 4 3 5 # Days 3 3 1 2 3 2 2 6 1 7 3 4 6 6 6 8 6 6 3 6 6 3 6 3 6 3 2 6 5 4 6 Econ. Income $18,600 $31,000 $2,500 $111,000 $806,000 $481,000 $203,500 $27,400 $28,000 $243,000 $31,000 $34,800 $34,250 $54,800 $685,000 $74,800 $68,500 $54,800 $15,500 $54,800 $27,400 $15,500 $54,800 $15,500 $68,500 $15,500 $9,250 $54,800 $140,000 $43,500 $41,100
Date 1/21-23/04 2/19-21/04 2/20/2004 4/1-2/04 4/22-24/04 5/7-8/04 6/5-6/04 6/6-11/04 6/7-11/04 6/13-19/04 6/18-20/04 6/18-21/04 6/20-25/04 6/20-25/04 6/21-26/04 6/26-7/2/04 6/28-7/2/04 7/3-9/04 7/8-10/04 7/10-16/04 7/11-16/04 7/13-15/04 7/17-23/04 7/18-20/04 7/18-24/04 7/21-24/04 7/22-23/04 7/24-30/04 7/26-30/04 7/29-8/1/04 8/3-8/04
#Attdg. 30 100 50 900 7000 5000 1100 20 100 300 100 75 45 80 1000 80 100 80 50 80 20 50 80 50 100 50 35 80 250 100 30
Property Aims/Microtel Best Western UNC UNC City wide City wide UNC UNC UNC UNC UNC/UCCC UNC UNC UNC UNC/City Wide UNC UNC UNC UNC UNC UNC UNC UNC UNC UNC UNC City wide UNC UNC UNC UNC

APASS Leadership/Diversity Workshop UNC Family Weekend American Conference on Irish Studies Children's Literacy Conference UNC Homecoming Weekend Old Chicago N. Colo. Wrestling T. Totals
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9/11/2004 10/1-2/04 10/1-3/04 10/8-9/04 10/16-17/04 12/17-18/04
75
20 200 30 25 300
1 1 2 1 1 1
1 2 3 2 2 2
UNC City wide UNC UNC City wide UNC Butler Hancock
$5,000 $74,000 $18,600 $9,250 $111,000 $81,400 $3,845,350
60 100
980 18,350
220 5,835
*Source: Greeley Convention and Visitors Bureau
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Phase III Appendix B: Community Organizations Benefitting from UNC Employee Time Donations in 2006
Organizationslistedbyemployees
ACLU A Woman's Place American Cancer Society American Heart Association ARC of Weld County Audubon Society Boy Scouts of America Centennial Healthcare Catholic Homeless Mission Christ Community Church City of Greeley Parks and Recreation Colorado Division of Wildlife Colorado Nurses Association Colorado School Counselor Assoc. (nonprofit) Colorado Wildlife Refuge Columbine Church of Christ Connections for Independent Living COSCPA N. Chapter Crystal Lakes R & R Assoc. Denver Red Cross Denver-Project Angel Heart Dos Rios Elementary School El Jebel Shrine Envision First Congregational Church First United Methodist Church Friends of Retired Greyhounds Guadalupe Center Goodwill Industries Greeley American Cancer Society Greeley Central High School Greeley PEO Sisterhood Greeley Senior Center Greeley Transitional House, Inc. Habitat for Humanity Heath Middle School Hospice of Northern Colorado Humane Society of Weld County Jefferson Elementary School Journey Christian Church Junior Achievement Kersey Community Church Kiwanis Club of Greeley

KUNC Lab School MADD Meals on Wheels of Weld County Monfort Family Birth Center Multiple Sclerosis Foundation National Hispanic Genealogy Group Nine Health Fair North Colorado Susan B. Komen Foundation Northern Colorado Medical Center Our Lady of the Valley Church Our Savior's Lutheran Church Partners of Weld County Planned Parenthood Platte Valley Schools Police Advisory Board Re-5J School District Relay for Life Retired Senior Volunteer Program (RSVP) of Weld County Rooms At Inn Salvation Army Scott School Sierra Club Sigma Theta Tau International St. Marys Catholic Church St. Patrick Presbyterian Church St. Peters Catholic Church Thompson River Parks and Recreation United Clothing Bank Union Colony Civic Center UNC Greeley Grays baseball organization United Way of Weld County US Forest Service Weld County Area Agency on Aging Weld County Democrats Weld County Food Bank Weld County Health Department Weld County School District 6 Weld Food Bank Weld Women's Sertoma Club WILPF Womens' Fund of Weld County
Note: Based on 113 respondents to employee survey (Spring 2006).
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Phase III Appendix C: Notes on Return to Education Methodology

C-1: Basic Cause and Effect Models Two models depict the complex causal relationships of a UNC education, first for the individual, second for the state. These models treat knowledge as a verb rather than as a noun. That is, knowledge initiates change and growth and is infused into all parts of our states productivity. An Individuals Rate of Return Cause and Effect Model UNC increases an individuals stock of human capital through general education and providing specific skill sets. Years after graduation, the UNC degree improves their human capital through experience. As human capital increases, so does the flow of income and the flow of health benefits. These flows accumulate as wealth. The flow of health benefits accumulate with more days at work, longer life, and better health. These accumulations provide a positive impact to the individuals and thus Colorados GSP and GSP growth. The individuals wealth increases becomes a benefit to the state, and the states increased benefits feedback to UNC increasing research and development and teaching capital. Colorados Rate of Return Cause and Effect Model Production fuels our states economy and is dependent on human capital, physical capital, labor, and natural resources shown in green in Figure C1. UNC feeds human capital through a students education and through its ability to transfer skills. Technology and ones ability to recognize and use new skill sets feeds into human capital, thus improving production. Because education improves all parts of production, it becomes a continuous active social benefit to the population. All components feed into a productivity growth rate, and that growth feeds back into UNC causing continued educational improvement, better tools of transfer and development methods.
UNC Economic Impact Analysis: Phase III Report Figure C-1: Benefits of Increasing Human Capital
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This model expresses a simplification of the complex and dynamic process of education and productivity, yet still demonstrates the importance of education as a driver of growth for an individual as well as for the state.
C-2: Rate of Return Model Notes Notes on an Individuals Rate of Return Two relationships form the basis of an individuals return on education. The relationship between human capital, wages, school, experience and health are derived from the Mincerian Wage and the Cutlers Health Dividend equations. These illustrate that what we learn, our human capital, is based on a relationship of schooling and experience. An individuals health is also a function of education as well as some combination of an individuals characteristics, such as race, gender, and age. Peoples wages reflect the combination of their human capital development and their state of health. With the relationship established, we determined the return on an individuals investment using these assumptions: Average starting salary for UNC graduates is $33,000 after 4 years of college; College cost is $5,340 per year for each of the four years; Average starting salary for the non-college wage earner is $18,333; Annual wage increase of 2.5 percent; and Inflation is 2 percent per year. This discounted cash-flow-analysis was run for 15 years; thereafter skills and on the job experience impact human capital more than does education. Results are reported for 10
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years as well, since this 10-year value may be compared to the return earned by typical company pension funds. Literature estimates a health dividend due to education between 15 percent and 55 percent. This analysis used a conservative estimate of 20 percent. The health dividend contributes to the return for an individual several different ways: There is a reduction in serious diseases reported by the population of college educated; and Days of work per person increases by 2.3 days per year. Table C1 provides a summary of the cash flows used for the calculation of the returns for the individual with and without the health dividend Table C1. Returns before and after the Health Dividends
Individuals Average Wage w/o Education $18,333 $18,425 $18,517 $18,610 $18,703

Year -4 -3 -2 -1 1

Health Augmented Student Cash Flow -3276 -3276 -3276 -3276 39600

Diff' -21609 -21701 -21793 -21886 20897

ROR with Health Dividend
Student Cash Flow -3276 -3276 -3276 -3276 33000

ROR before Health Dividend
$19,464 $19,561 $19,659

9 10 11

41212 41418 41625 42253 42464
21748 21857 21966

15%
34343 34515 34688

8%
$19,956 $20,055
14 15
22297 22409
17%
35211 35387
11%
Notes on Colorados Return on Education Determination of Colorados return on investment required several steps: 1. Colorados share of tuition must be compensated for student attrition; 2. For each year the students the wages of the individual-without-education are subtracted from the costs or wages of the student with education; 3. The difference from (2) is multiplied by a spending multiplier; and 4. From (3) a cumulative cash flow is derived and a rate of return is calculated. The estimate of the states burdened share, or costs due to attrition, is illustrated in Table C-2:
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Table C-2. Determination of States Burdened Costs Due to Attrition

7,000 -2,100 4,900 -980 3,920 - 470 3,450 $4,334,400 4,045,440 2,912,717 $11,292,557 $3,274 $818 $2,064 $2,882 number of in-state students number of students lost Freshmen to Sophomore years (30%) number of students lost Sophomore to Junior year (20%) number of students lost Junior to Senior students left cost due to loss Freshman to Sophomore attrition cost due to loss Sophomore to Junior attrition cost due to loss Junior to Sophomore attrition Total Cost (Note: we did not add back students who transfer in) Total Cost/(students left) average burden per year (assuming four years to graduate) initial state cost initial state cost + average burden
There is a boost to state economic activity from increased wages due to education. This boost, a spending multiplier, is applied to each years cash flow. Assuming a graduate spends 65 percent of income on goods and services (the balance invested into an annuity or starter home), we derive a conservative multiplier of 2.86 (see column f, below). The negative cash flow (column e) is covered by the State and those costs are increased by the multiplier, column f. The difference in wages due to the education is a benefit to the state, also in column f (the positive cash flow). This wage differential passes around the economy about 2.86 times (the economic boost) providing the cumulative cash flow in column g. Table C3. Rate of Return on States Educational Investment per Student
(a) (b) (c) (d) (e) States Burdened Share of Tuition -2882 -2882 -2882 -2882 (f) (g) Cumul. Cash Flow -8235 -16471 -24706 -32942 7907 342137 384863 427802 557909 601713 (h)
Individual w/o Educ. 18333 18425 18517 18610 18703 19464 19561 19659 19956 20055
Year -4 -3 -2 -1 1 9 10 11 14 15
Graduates Wages
Diff
( a ) ( e) (1 mpc)
-8235 -8235 -8235 -8235 40849 42512 42725 42938 43586 43804
ROR on (h)
33000 34343 34515 34688 35211 35387
14297 14879 14954 15028 15255 15331
55%
56%
Note the benefit to the state is 55 percent at Year 10 using the burdened costs.
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Notes on Social Return on Education The social return on education is similar to a dividend payment to the state. The dividend is derived by a change in technology for the better, resulting in a higher productivity by state workers. This dividend is initiated by a set of skilled teachers who confer not only new knowledge, but improved learning skills, and an increased ability to recognize new technologies. A better educated workforce assimilates these better tools, imposes better decision processes, and is better equipped to frame the issues facing the individual, the firm, and the state. The model for the social return incorporates both the entry and dispersion of newly degreed graduates into Colorados workforce, as well as the entry and dispersion of the teaching graduates who further enhance the learning ability of the next generations. Additional details on the models used in this analysis are available from the Department of Economics, University of Northern Colorado. Please request the document, Return on Education.
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Phase III References

Baum, Sandy and Kathleen Payea, Education Pays: Trends in Higher Education Series, College Entrance Examination Board, 2004. Betzil, Christian, Ph.D., Class Lecture Motes on Micro-Econometrics, Institute for the Study of Labor (IZA), Bonn, Germany. October 2006 <http://www.iza.org/ teaching/belzil_ss2005/mincernotes.pdf> City of Greeley, Department of Planning and Zoning, September 2000, City of Greeley 2020 Comprehensive Plan Executive Summary. Full document available at City of Greeley website. Cutler, David M., Ph.D. and Adriana Lleras-Muney, Ph.D., June 2006, Education and Health: Evaluating Theories and Evidence, Working Paper 12352, National Bureau of Economic Research, Cambridge, MA 02138 Larson, Robert W., 1989, Shaping Educational Change: The First Century of the University of Northern Colorado at Greeley, Colorado Associated University Press. Lyons, Karen and Johnson, Nicholas, March 2006, Education and Investment, Not Tabor, Fueled Colorados Economic Growth in 1990s, Center on Budget and Policy Priorities. October 2006 < http://www.cbpp.org/3-23-06sfp.htm> Gunasekara, Chrys, Ph.D., 2004, Regional Roles of Universities in Technology Transfer and Economic Development, British Academy of Management Conference, St Andrews, Scotland. October 2006 <http://eprints.qut.edu.au/archive/ 00001008/01/BAM_2004_Paper_unis.pdf> Jones, Charles, Ph.D., and Williams, John, January 1997, Measuring the Social Return on R&D, Stanford University Working Papers, Stanford, CA. October 2006 <http://ideas.repec.org/p/wop/stanec/97002.html> University of Northern Colorado, Annual Undergraduate Attrition Report 2003 -2004, Office of Institutional Research and Planning, University of Northern Colorado, Greeley, CO. US Department of Commerce, Bureau of Economic Analysis. November 2006 < http:// bea.gov/bea/newsrel/gspnewsrelease.htm>

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Summer2005 Spring2007

EconomicImpactTaskforce: JoeF.Alexander RhondaR.Corman LauraS.Connolly PatriciaE.Graham CharlesG.Schmidt

Phase II: Local and Regional Multiplier Effects

Phase III: Contributions to Community

UNC Economic Impact Analysis: Phase I Report

UNC Economic Impact Analysis: Phase IDirect Effects

UNC Economic Impact Analysis: Phase I Report

2003-2004 Direct University Expenditures

UNC Economic Impact Analysis: Phase I Report

Table 1: Operational Expenditures by Region

Table 2: Capital Construction Expenditures (6 Year Average)

Employment: Faculty, Staff, and Students

UNC Economic Impact Analysis: Phase I Report

% Faculty per Location

% Support Staff per Location

UNC Economic Impact Analysis: Phase I Report

Direct Tax Revenue Estimates: Faculty and Staff

UNC Economic Impact Analysis: Phase I Report

$31,832,758 $23,874,568 $ 1,105,396 $62,644,586 $46,983,440 $ 2,175,333

UNC Economic Impact Analysis: Phase I Report

UNC Economic Impact Analysis: Phase I Report

$ 7,874,568.49 $ 272,460.07 $ 1,065,266.43 $ 40,480.12 $ 9,797,186.53 $ 284,118.41

$ 12,599,309.60 $ 435,936.11 $ 1,704,426.27 $ 64,768.20 $15,675,498.44 $ 454,589.45

Direct Tax Revenue Estimates: Students

$3,422.38 $ 118.41 $ 99.25

$ 844.75 $ $ 6.83 198.50

UNC Economic Impact Analysis: Phase I Report

$ 36,167,711.84 $ $ 1,251,356.88 1,048,874.00

$ 72,335,318.00 $ $ 2,502,819.44 2,097,748.00

UNC Economic Impact Analysis: Phase I Report

Phase I Appendix A: Estimation Methodology

UNC Economic Impact Analysis: Phase I Report

UNC Economic Impact Analysis: Phase I Report

UNC Economic Impact Analysis: Phase II Report

UNC Economic Impact Analysis: Phase II Report

UNC Economic Impact Analysis: Phase II Report

UNC Economic Impact Analysis: Phase II Report

Indirect and Induced Effects

UNC Economic Impact Analysis: Phase II Report

Weld County $6.9 million 12%

Outside Colorado $33.7 million 57%

Remainder of Colorado $16.9 million 28%

UNC Economic Impact Analysis: Phase II Report

Northern Colorado Value-Added (Weld and Larimer Counties)

Colorado Total Value-Added

UNC Economic Impact Analysis: Phase II Report

UNC Economic Impact Analysis: Phase II Report

Northern Colorado Value-Added (Weld and Larimer Counties)

Colorado Total Value-Added

UNC Economic Impact Analysis: Phase II Report

UNC Economic Impact Analysis: Phase II Report

Indirect + Induced 23.28 33.75

Total Impact 78.95 114.12

Northern Colorado Value-Added (Weld and Larimer Counties)

UNC Economic Impact Analysis: Phase II Report

UNC Economic Impact Analysis: Phase II Report

Northern Colorado Value-Added (Weld and Larimer Counties)

Colorado Total Value-Added*

UNC Economic Impact Analysis: Phase II Report

Total Tax Impacts

$126,253 $37,813 $102,303 $109,551 $375,920

$762,189 $166,791 $616,197 $421,277 $1,966,454

$2,903,243 $441,531 $2,342,714 $1,432,270 $7,119,758

$3,791,684 $646,136 $3,061,213 $1,963,098 $9,462,131